Ad-hoc | 27 July 2012 06:59
European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Half Year Results
27.07.2012 06:59
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Ad-hoc release, 27 July 2012
Steady Momentum: EADS Reports Solid Half-Year (H1) Results 2012
- EADS improves guidance due to strong underlying performance
- Revenues increase by 14 percent to EUR 24.9 billion
- EBIT* before one-off up 89 percent: EUR 1.4 billion
- Net Income* before one-off(4) increases to EUR 814 million; Net Income
increases to EUR 594 million
- Free Cash Flow of EUR -1.8 billion reflects production ramp-up-related
inventory increase and back-loaded deliveries
- New hedge contracts of $ 19 billion enhance financial stability
- A350 XWB Entry-into-Service moving into H2 2014; EUR 124 million charge
booked which accounts for the actual delay of around three months
EADS (stock exchange symbol: EAD) achieved solid financial results in the
first half of 2012, exceeding expectations. Order intake(5) in the first
six months reached EUR 28.2 billion driven by solid order activity at
Eurocopter, Astrium, Cassidian and Airbus Military and ongoing commercial
momentum at Airbus. At the end of June, EADS' order book(5) stood at a
record level of EUR 551.7 billion providing stability and visibility in the
current macro environment. Revenues amounted to EUR 24.9 billion.
The EBIT* before one-off of around EUR 1.4 billion benefited from strong
underlying performance. The reported EBIT* amounted to EUR 1.1 billion,
significantly above the 2011 level. The Net Cash position amounted to EUR
9.7 billion.
'The Group performed well in the first six months and our financial results
demonstrate steady momentum. The new management is united in pursuing
improved profitability through a clear focus on programme execution.
Another focus of our efforts is to further integrate and globalise EADS.
One important step into this direction is our decision to build a Final
Assembly Line for Airbus aircraft in the US', said Tom Enders, CEO of EADS.
'Our key programmes, particularly at Airbus, continue to command our utmost
attention. On A350 especially, maturity of sections delivered to the final
assembly is of key importance to us as we prepare for a robust production
ramp-up.'
In the first six months of 2012, EADS' revenues increased 14 percent to
EUR 24.9 billion (H1 2011: EUR 21.9 billion) driven by growth across all
Divisions. The newly acquired companies in 2011 contributed by around EUR
800 million to this growth. Until the end of June, physical deliveries
continued to be at a high level with 279 aircraft at Airbus Commercial and
198 helicopters at Eurocopter. In July, Astrium achieved the 49th
consecutive successful Ariane 5 launch.
EBIT* before one-off - an indicator capturing the underlying business
margin by excluding non-recurring charges or profits caused by movements in
provisions or foreign exchange impacts - stood at around EUR 1.4 billion
(H1 2011: around EUR 0.7 billion) for EADS and at around EUR 830 million
for Airbus (H1 2011: around EUR 310 million). The increase compared to the
same period last year is driven by improved performance at Airbus
Commercial, Eurocopter and Astrium. Operational improvement at Airbus
Commercial includes favourable volume and better pricing. Eurocopter
performance reflects volume and mix effects from commercial and support
activity while at Astrium the increase is driven by productivity
improvements and the integration of Vizada.
During the first half of 2012, EADS accelerated its hedge activity and
implemented $ 19.2 billion of new hedge contracts at an average rate of EUR
1 = $ 1.31, which enhances stability of the Group's financial performance.
At the end of June, EADS' total hedge portfolio stood at $ 84.1 billion.
EADS' reported EBIT* increased by 91 percent to EUR 1,078 million (H1 2011:
EUR 563 million), driven by the improvement of the EBIT* before one-off.
In the first half of 2012, the dollar mismatch and balance sheet
revaluation had a positive impact on the EBIT* of around EUR 20 million.
This quarter, with the A350 XWB Entry-into-Service moving into H2 2014,
Airbus Commercial booked a charge of EUR 124 million to account for the
actual delay of around three months.
The A380 wing rib technical fix is under development. For the A380s already
delivered, the total charges recorded in the first half of 2012 amounted to
EUR 181 million, of which EUR 23 million were booked in the second quarter.
Net Income rose significantly to EUR 594 million (H1 2011: EUR 109
million), or earnings per share of EUR 0.73 (earnings per share H1 2011:
EUR 0.13). The Net Income* before one-off(4) increased to EUR 814 million
(H1 2011: EUR 389 million) in line with the strong underlying performance.
The finance result amounts to EUR -239 million (H1 2011: EUR -366 million).
The interest result of EUR -143 million (H1 2011: EUR -97 million)
deteriorated compared to the 2011 level, mainly due to lower interest
income related to the lower average cash balance and interest rates
compared to last year.
Meanwhile, the other financial result of EUR -96 million (H1 2011: EUR -269
million) includes an improved impact from a foreign exchange revaluation
compared to H1 2011. This line also includes the unwinding of discounted
provisions
Self-financed Research & Development (R&D) expenses remained roughly stable
at EUR 1,425 million (H1 2011: EUR 1,409 million).
Free Cash Flow before customer financing amounted to EUR -1,671 million
(H1 2011: EUR -286 million). The improvement of the operational performance
is weighed down by a deterioration of the working capital. This is mainly
due to a strong increase of inventory as EADS continues to ramp up
production while deliveries and milestone achievements are back-loaded in
the year, especially on A380. However, the main deterioration at Airbus was
related to the first quarter of 2012.
In the first half of 2012, low customer financing support of EUR -80
million had been provided.
The level of capital expenditure increased compared to last year, mainly at
Airbus and Eurocopter.
Free Cash Flow after customer financing stood at EUR -1,751 million (H1
2011: EUR -184 million).
The Net Cash position of EADS amounted to EUR 9.7 billion (year-end 2011:
EUR 11.7 billion), also reflecting a cash contribution to pension assets of
EUR 320 million as well as the dividend payment of around EUR 370 million.
EADS' order intake(5) amounted to EUR 28.2 billion (H1 2011: EUR 58.1
billion). The order intake was driven by solid order activity at
Eurocopter, Astrium, Cassidian and Airbus Military and ongoing commercial
momentum at Airbus Commercial.
At the end of June 2012, the Group's order book(5) stood at a record level
of EUR 551.7 billion (year-end 2011: EUR 541.0 billion), providing
stability and visibility in the current macro environment.
The Airbus Commercial backlog was improved by a positive revaluation impact
of around EUR 12 billion due to the appreciation of the US dollar closing
spot rate since the year-end 2011.
The defence order book stood stable at EUR 51.9 billion (year-end 2011:
EUR 52.8 billion).
At the end of June 2012, EADS' workforce consisted of 135,634 employees,
(year-end 2011: 133,115).
Outlook
As the basis for EADS 2012 guidance the Group expects the world economy and
air traffic to grow in line with prevailing independent forecasts and
assumes no major disruption due to the current euro crisis.
EADS' results of the first six months confirm the Group's growth and
improvement trend. These positive dynamics lead EADS to improve its 2012
guidance. In 2012, Airbus should deliver around 580 commercial aircraft,
including 30 targeted A380 deliveries.
Gross orders should be above the number of deliveries, in the range of 600
to 650 aircraft.
Based on an assumption of EUR 1 = $ 1.35, EADS 2012 revenues should
continue to grow at around 10 percent.
Based on the solid H1 performance, especially at Airbus, Eurocopter and
Astrium, EADS expects 2012 Group EBIT* before one-off to be around
EUR2.7bn.
As a result and with an expected tax rate for the full year of slightly
below 30 percent, the EADS 2012 EPS* before one-off(4) should now be around
EUR 1.95 (FY 2011: EUR 1.39).
Going forward, the reported EBIT* and EPS* performance of EADS will be
dependent on the Group's ability to execute on its complex programmes such
as A400M, A380 and A350 XWB, in line with the commitments made to
customers.
Based on the targeted 30 A380 deliveries, EADS should continue to generate
a positive Free Cash Flow after customer financing and before acquisitions.
* EADS uses EBIT pre-goodwill impairment and exceptionals as a key
indicator of its economic performance. The term 'exceptionals' refers to
such items as depreciation expenses of fair value adjustments relating to
the EADS merger, the Airbus Combination and the formation of MBDA, as well
as impairment charges thereon.
EADS - Half-Year (H1) Results 2012
(Amounts in euro)
EADS Group H1 2012 H1 2011 Change
Revenues, in millions 24,934 21,936 +14%
thereof defence, in millions 4,837 4,924 -2%
EBITDA (1), in millions 1,972 1,344 +47%
EBIT (2), in millions 1,078 563 +91%
Research & Development expenses, in millions 1,425 1,409 +1%
Net Income (3), in millions 594 109 +445%
Earnings Per Share (EPS) (3) 0.73 0.13 +0.60 EUR
Free Cash Flow (FCF), in millions -1,751 -184 -
Free Cash Flow before Customer Financing, in -1,671 -286 -
millions
Order Intake (5), in millions 28,248 58,099 -51%
EADS Group 30 June 2012 31 Dec 2011 Change
Order Book (5), in millions 551,711 540,978 +2%
thereof defence, in millions 51,909 52,775 -2%
Net Cash position, in millions 9,705 11,681 -17%
Employees 135,634 133,115 +2%
by Division Revenues EBIT(2)
(Amounts in millions of H1 2012 H1 2011 Change H1 2012 H1 2011 Change
Euro)
Airbus Division (6) 17,246 15,312 +13% 553 202 +174%
Airbus Commercial 16,585 14,464 +15% 548 223 +146%
Airbus Military 843 1,112 -24% 2 3 -33%
Eurocopter 2,771 2,171 +28% 199 94 +112%
Astrium 2,661 2,347 +13% 130 103 +26%
Cassidian 2,186 2,133 +2% 88 89 -1%
Headquarters / -651 -551 - 95 63 -
Consolidation
Other Businesses 721 524 +38% 13 12 +8%
Total 24,934 21,936 +14% 1,078 563 +91%
by Division Order Intake(5) Order Book(5)
(Amounts in millions H1 2012 H1 2011 Change 30 June 31 Dec Change
of Euro) 2012 2011
Airbus Division (6) 20,955 52,394 -60% 506,120 495,513 +2%
Airbus Commercial 19,782 52,086 -62% 485,682 475,477 +2%
Airbus Military 1,271 319 +298% 21,661 21,315 +2%
Eurocopter 2,448 1,736 +41% 13,491 13,814 -2%
Astrium 2,198 1,701 +29% 14,317 14,666 -2%
Cassidian 2,766 1,825 +52% 16,326 15,469 +6%
Headquarters/ -576 -545 - -1,360 -1,467 -
Consolidation
Other Businesses 457 988 -54% 2,817 2,983 -6%
Total 28,248 58,099 -51% 551,711 540,978 +2%
EADS - Second Quarter Results (Q2) 2012
EADS Group Q2 2012 Q2 2011 Change
Revenues, in millions 13,530 12,082 +12%
EBIT (2), in millions 735 371 +98%
Net Income (3), in millions 461 121 +281%
Earnings Per Share (EPS) (3) 0.56 0.15 +0.41 EUR
by Division Revenues EBIT(2)
(Amounts in millions of Q2 2012 Q2 2011 Change Q2 2012 Q2 2011 Change
Euro)
Airbus Division (6) 9,337 8,299 +13% 370 87 +325%
Airbus Commercial 9,086 7,757 +17% 402 98 +310%
Airbus Military 418 678 -38% -9 2 -
Eurocopter 1,572 1,348 +17% 134 63 +113%
Astrium 1,336 1,176 +14% 65 51 +27%
Cassidian 1,261 1,255 0% 80 81 -1%
Headquarters/ -336 -274 - 67 74 -
Consolidation
Other Businesses 360 278 +29% 19 15 +27%
Total 13,530 12,082 +12% 735 371 +98%
EADS is a global leader in aerospace, defence and related services. In
2011, the Group - comprising Airbus, Astrium, Cassidian and Eurocopter -
generated revenues of EUR 49.1 billion and employed a workforce of over
133,000.
Contacts:
Martin Agüera +49 175 227 4369
Matthieu Duvelleroy +33 629 431 564
Philipp Lehmann +49 151 151 42921
Rod Stone +33 1 42 24 27 75
27.07.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: European Aeronautic Defence and Space Company EADS N.V.
P.O. Box 32008
2303 DA Leiden
Netherlands
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
E-mail: ir@eads.net
Internet: www.eads.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
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