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Price Prediction

Airbus reports jump in the profits of the first quarter and stick to the expectations of the entire year despite the Trump’s definition attack

The European aircraft manufacturer said on Wednesday that it was holding its expectations throughout the whole year, including the delivery of about 820 aircraft, although the uncertainty about the American customs tariff has led to the cavity of supply chains around the world.

“We maintain the directive that excludes the customs tariff, which adds the complexity and remains unconfirmed in terms of implementation, scope and duration,” said CEO Joomium in a statement.

“We are closely watching the situation and evaluating it, but it is too early to determine the effect today.”

Cautious expectations came as Airbus announced a 33 percent increase in the net profit in the first quarter to 793 million euros (900 million dollars).

The company is many major American airlines as customers and has a wide manufacturing base in the United States.

But President Donald Trump’s attack – including 25 percent of steel and aluminum duties – can sharply pay aircraft prices for American buyers, including the American Boeing competitor in Airbus.

Some airlines have already warned that they will not be able to bear the additional costs in a high competitive industry.

Airbus, which has achieved 766 aircraft last year, is still planning to achieve its goals for the entire year by about 7.0 billion euros of EBIT operating profits and free cash flow of 4.5 billion euros.

However, “the company does not assume any additional disturbances towards global trade or the global economy, the air movement, the supply chain, its internal operations and its ability to provide products and services.”

This story was originally shown on Fortune.com

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