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MarketScreener Homepage  >  Indexes  >  Euronext Paris  >  CAC 40    PX1   FR0003500008

CAC 40

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Airbus adds 15 billion euro credit line, scraps dividend

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03/23/2020 | 05:29am EDT
FILE PHOTO: An Airbus A330neo on its final assembly line at Airbus headquarters in Colomiers, near Toulouse

Airbus boosted its liquidity with a 15 billion euro ($16 billion) expanded credit facility on Monday while suspending its 2020 outlook in response to the coronavirus crisis that has grounded much of the global airlines fleet.

The European planemaker also joined U.S. rival Boeing in scrapping its 2019 dividend, worth a total of 1.4 billion euros. It also said it would suspend the voluntary top-up of staff pension schemes.

"These measures are designed to protect the future of Airbus and to ensure we can resume normal business or future business as soon as the situation improves," CEO Guillaume Faury told reporters.

Airbus has not drawn down any credit lines and said it had enough liquidity to cope with the coronavirus with some 30 billion euros worth of liquidity available.

"We have a lot of runway with this 30 billion," Chief Financial Officer Dominik Asam said.

Airbus shares fell 10% versus a wider French CAC40 market index down by around 4%.

Faury called for "strong government help" for airlines across the world that have been forced to ground fleets, as well as for distressed aerospace suppliers.

The French government has offered 300 billion euros of loan guarantees to help companies, but Airbus said its own credit facility was commercial and did not fall under the scheme.

Boeing, already battered by the year-old grounding of its 737 MAX airliner, last week called for $60 billion in U.S. support for the U.S. aerospace sector.

PARTIAL PRODUCTION

Faury said it would become increasingly difficult to deliver jets and some would be stored. Most airlines continue to pay deposits even though many have called for deferrals, he said.

Airbus said it would use customer financing "very selectively" to help distressed airlines and that it expected leasing companies, which are involved in almost half of its deliveries, to play their role as a "shock absorber".

Airbus also said it had identified operational measures to save cash as it resumed partial production at factories in France and Spain after a four-day shutdown.

Airbus, which sources say had been producing 58 single-aisle jets a month before the crisis, declined to say at what rate it would resume output.

Factories have installed extra spacing between workers and shorter shift times to allow for sterilizing tools.

Its immediate goal is to maintain parts flowing from a fragile supply chain at a sustainable rate, Faury said.

"We need to stabilize and see from what base we can restart," he told analysts.

Industry executives say shortages are beginning to emerge in the supply chain and some contractors have paused production.

Germany's MTU Aero Engines, which is a supplier to Pratt & Whitney engines used on many Airbus single-aisle jets, said it would halt output for three weeks from March 30.

(Additional reporting by Sudip Kar-Gupta, Christoph Steitz and Laura Marchioro; Editing by Kim Coghill and Jason Neely)

By Matthieu Protard and Tim Hepher

Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE -2.16% 73.3 Real-time Quote.-43.82%
BASE CO., LTD. 2.35% 4565 End-of-day quote.68.87%
BASE, INC. 6.11% 6950 End-of-day quote.296.01%
CAC 40 -0.61% 5042.38 Real-time Quote.-15.13%
JASON CO., LTD. 2.13% 817 End-of-day quote.124.45%
MAX CO., LTD. 0.92% 1644 End-of-day quote.-25.07%
MTU AERO ENGINES AG -1.35% 153.6 Delayed Quote.-39.67%
SHIFT, INC. 4.06% 11270 End-of-day quote.41.23%
THE GLOBAL LTD. -0.49% 205 End-of-day quote.-56.48%
WORLD CO., LTD. 1.55% 1571 End-of-day quote.-41.62%
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Technical analysis trends CAC 40
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Top / Flop CAC 40
WORLDLINE 74.12 Real-time Quote.1.95%
ACCOR 25.2 Real-time Quote.0.96%
PERNOD RICARD 146.4 Real-time Quote.0.90%
DASSAULT SYSTÈMES SE 153.8 Real-time Quote.0.79%
KERING SA 506.7 Real-time Quote.0.60%
UNIBAIL-RODAMCO-WESTFIELD SE 45.96 Delayed Quote.-2.11%
AIRBUS SE 73.3 Real-time Quote.-2.16%
BNP PARIBAS 36.99 Real-time Quote.-2.21%
RENAULT 24.58 Real-time Quote.-2.79%
ARCELORMITTAL 10.236 Delayed Quote.-3.69%
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