Airbus SE (EADSY) shares hit a record high Tuesday after the European planemaker posted stronger-than-expected third quarter earnings as its commercial plans and helicopters surprised on the upside.
Airbus earned €697 million ($812 million) for the three months ending in September, a figure that topped analysts' forecasts but was still down 4% year-on-year. Revenues for the third quarter climbed 2% to €14.24 billion, about 3% ahead of the company compiled analyst forecasts, while the earnings figure came in about 13% ahead of expectations. The company also said it had discovered problems relating to the use of agents to sell U.S. arms technology, exposing it to potential fines.
Airbus shares climbed 4.51% in Paris trading to change hands at an all-time high of €88.54 and topped all gainers on France's CAC-40.
"Good numbers, particularly in Airbus commercial, with no change to guidance despite seeing slightly fewer A320neo deliveries," noted Goldman Sachs analysts Chris Hallam and Peter Lapthorn. "However, the company has disclosed additional compliance issues, this time in the US relating to ITAR restrictions (arms control). Concerns around the potential timing/size of penalties in the US may weigh on sentiment."
Airbus said it had uncovered inaccuracies in declarations to the U.S. State Department relating to the U.S. International Traffic in Arms Regulations, known as ITAR. The discovery adds to Airbus's legal woes in Europe, where the company is in the midst of corruption probes in both the U.K and France linked to payments made to middle men for the sale of airplanes.
Airbus said Tuesday that it was still cooperating with authorities on the European investigations and that it was too early to comment on the potential outcome of the inquiry.
