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Airbus profits surge

Airbus is spending more than expected on the new A350, but profit is still expected to grow by 40 per cent next year and the shares are fuelled for further gains
November 20, 2013

High-flying plane manufacturer EADS (PA: EAD) had an impressive third quarter, driven again by the Airbus commercial aircraft division. The unit has generated double-digit top-line growth so far this year and a 48 per cent surge in underlying operating profit. With just weeks to year-end, management has reiterated full-year guidance for profit of €3.5bn (£2.93bn) - up 18 per cent - giving adjusted EPS of €2.50.

IC TIP: Buy at 52.14€

True, extra money will be needed to deliver the first A350, the rival to Boeing's 787 Dreamliner, late next year, but commercial jet orders are expected to top 1,200 this year, underpinning long-term growth. Crucially, airline Emirates has just committed to buy 50 A380 superjumbos at the Dubai Air Show.

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