Airbus takes a charge of nearly $1 billion on space programs
What prompted Airbus to take a nearly one billion dollar charge?
Airbus took a nearly one billion dollar charge due to poor cost and schedule performance on various satellite programs. The company conducted an extensive technical review of all programs, identifying commercial and technical challenges related to updated assumptions on schedules, workload, sourcing, risks, and costs over the lifetime of certain telecommunications, navigation, and observation programs.
How will the 900 million euro charge impact Airbus' cash flow in 2023?
The 900 million euro charge will impact Airbus' cash flow in 2023 by approximately 300 million euros, according to Thomas Toepfer, Airbus chief financial officer. This impact is due to poor cost and schedule performance on various satellite programs within the Space Systems business.
What changes has Airbus implemented in response to these challenges?
Airbus has implemented a highly selective bid/no-bid strategy for future programs, emphasizing technology maturation. They have also revised make-or-buy decisions and are evaluating all strategic options for their space unit, including restructuring and merger and acquisition options.