Ad-hoc | 14 November 2013 07:00
European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Quarter Results
14.11.2013 07:00
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Ad-hoc release, 14 November 2013
EADS Reports Improved Nine-Month (9m) Results 2013
- Revenues increase 7 percent to EUR 40.0 billion
- EBIT* before one-off rises 22 percent to EUR 2.3 billion
- Net Income rises 36 percent to EUR 1.2 billion
- Aircraft order, delivery guidance raised to reflect market demand
- Free Cash Flow 2013 guidance adjusted to EUR -1.5 billion
- EBIT* before one-off target reaffirmed at EUR 3.5 billion for 2013
EADS (stock exchange symbol: EAD) reported higher revenues and profits for
the first nine months of 2013, driven by the strong momentum within its
commercial aircraft activities.
Order intake(4) more than doubled to EUR 138.2 billion with the order book
value reaching EUR 642.5 billion at the end of September. The Net Cash
position was
EUR 5.2 billion on 30 September, 2013.
'We achieved a good improvement in revenues and profitability over the
first nine months thanks largely to our civil aircraft business,' said EADS
CEO
Tom Enders. 'However, we have significant challenges ahead of us,
particularly with respect to cash generation and to the A350 XWB programme,
which has entered the next critical phase. I am pleased with the progress
made in the reorganisation of the Group's defence and space businesses into
the new Airbus Defence and Space Division and we will provide a further
update on this before the end of the year.'
Over the first nine months of 2013, EADS' revenues increased 7 percent to
EUR 40.0 billion (9m 2012: EUR 37.3 billion), reflecting the aircraft
delivery pattern at Airbus Commercial and increasing activity at Airbus
Military (A400M). Revenues were broadly stable at Eurocopter, Astrium and
Cassidian.
EBIT* before one-off - an indicator capturing the underlying business
margin by excluding material non-recurring charges or profits caused by
movements in provisions related to programmes and restructurings or foreign
exchange impacts - increased to EUR 2.3 billion (9m 2012: EUR 1.9 billion)
for EADS and to
EUR 1.7 billion for Airbus (9m 2012: EUR 1.2 billion). This improvement
reflected the solid operational performance at Airbus Commercial. The Group
EBIT* before one-off margin was 5.8 percent.
EADS' reported EBIT* increased to EUR 2.1 billion (9m 2012: EUR 1.6
billion).
One-off charges were limited to the known impact related to the A380 wing
rib feet issue and the pre-delivery payment (PDP) dollar mismatch and
balance sheet revaluation at Airbus. The finance result was EUR -445
million (9m 2012:
EUR -337 million) while net income(3) increased to EUR 1,195 million (9m
2012:
EUR 880 milliona), or earnings per share of EUR 1.50 (earnings per share 9m
2012:
EUR 1.08a). Self-financed Research & Development (R&D) expenses increased
slightly to EUR 2,179 million (9m 2012: EUR 2,145 million).
Free Cash Flow before acquisitions amounted to EUR -4,815 million (9m 2012:
EUR -3,235 million), reflecting the working capital evolution linked to
delivery phasing, industrial ramp-up, some customer financing activity and
the seasonality of the group's government business. Capital expenditure of
EUR 2.1 billion was mainly driven by progress on A350 XWB development
aircraft and includes development costs capitalised under IAS 38 of EUR 196
million for the A350 XWB. EADS finished the first nine months of 2013 with
a Net Cash position of EUR 5.2 billion (year-end 2012: EUR 12.3 billion)
after taking into account the
EUR 1.9 billion used to fund the share buyback programme and the 2012
dividend payment of EUR 468 million. The gross cash balance on 30 September
was
EUR 12.5 billion, providing financial flexibility and security.
EADS' order intake(4) rose sharply to EUR 138.2 billion (9m 2012: EUR 50.4
billion), as the strong commercial momentum continued into the third
quarter, particularly at Airbus. Eurocopter saw some recovery in commercial
bookings in the third quarter while Astrium reported significant order
momentum. By the end of September 2013, the total order book(4) had risen
in value to EUR 642.5 billion (year-end 2012:
EUR 566.5 billion). The defence order book amounted to EUR 47.7 billion
(year-end 2012:
EUR 49.6 billion).
As of 30 September 2013, EADS had 144,156 employees (year-end 2012:
140,405).
Outlook
As the basis for its 2013 guidance, EADS expects the world economy and air
traffic to grow in line with prevailing independent forecasts and assumes
no major disruptions. Based on the nine month results, EADS has made
several adjustments to its full year guidance.
In 2013, gross commercial aircraft orders should be above 1,200 aircraft.
Airbus deliveries are expected to be up to 620 commercial aircraft.
Due to lower A380 deliveries and assuming an exchange rate of EUR 1 = $
1.35, EADS revenues should see moderate growth in 2013.
By stretching the 2012 underlying margin improvement, in 2013 EADS targets
an EBIT* before one-off of EUR 3.5 billion and an EPS* before one-off of
around EUR 2.50 (FY 2012: EUR 2.24), prior to the share buyback.
Excluding the wing rib feet A380 impact of around EUR 85 million in 2013
based on
25 deliveries, going forward, from today's point-of-view, the 'one-offs'
should be limited to potential charges on the A350 XWB programme, foreign
exchange effects linked to the PDP mismatch and balance sheet revaluation.
The A350 XWB programme remains challenging. Any schedule change could lead
to an increasingly higher impact on provisions.
An assessment of the need for potential one-off costs from the creation of
Airbus Defence and Space will be conducted in the fourth quarter of 2013.
Free Cash Flow after customer financing and before acquisitions is now
expected to be negative at around EUR -1.5 billion. This reflects the
company's investment into production ramp-up and development programmes as
well as recent government customer budgetary constraints.
* 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.
a. Certain nine-month 2012 and year-end 2012 figures have been restated to
reflect the change to pension accounting under IAS 19 while Airbus'
figures also reflect the inclusion of ATR and Sogerma within Airbus
Commercial. ATR and Sogerma were formerly included in
Other
Businesses.
About EADS
EADS is a global leader in aerospace, defence and related services. In
2012, the Group - comprising Airbus, Astrium, Cassidian and Eurocopter -
generated revenues of EUR 56.5 billion and employed a workforce of over
140,000.
Contacts:
Martin Agüera +49 175 227 4369
Rod Stone +33 630 521 993
Matthieu Duvelleroy +33 629 431 564
Gregor v. Kursell +49 89 607 34255
www.eads.com
EADS - Nine-Month (9m) Results 2013
(Amounts in euro)
EADS Group 9m 2013 9m 2012 Change
Revenues, in millions 39,966 37,258 +7%
thereof defence, in millions 7,714 7,355 +5%
EBITDA (1), in millions 3,485 2,906a +20%
EBIT (2), in millions 2,146 1,583a +36%
Research & Development expenses, 2,179 2,145 +2%
in millions
Net Income (3), in millions 1,195 880a +36%
Earnings Per Share (EPS) (3) 1.50 1.08a +39%
Free Cash Flow (FCF), in millions -4,830 -3,376 -
Free Cash Flow -4,815 -3,235 -
before Acquisitions, in millions
Free Cash Flow -4,412 -3,279 -
before Customer Financing, in millions
Order Intake (4), in millions 138,172 50,409 +174%
EADS Group 30 Sept 31 Dec Change
2013 2012
Order Book (4), in millions 642,463 566,493 +13%
thereof defence, in millions 47,705 49,570 -4%
Net Cash position, in millions 5,244 12,292 -57%
Employees 144,156 140,405 +3%
by Division Revenues EBIT (2)
(Amounts in millions of Euro) 9m 9m Change 9m 9m Change
2013 2012 2013 2012
Airbus Division (5) 28,770 26,051a +10% 1,502 844a +78%
Airbus Commercial 27,552 25,155a +10% 1,521 823a +85%
Airbus Military 1,769 1,194 +48% 8 8 0%
Eurocopter 4,132 4,116 0% 217 275a -21%
Astrium 4,014 3,934 +2% 205 190a +8%
Cassidian 3,498 3,484 0% 153 145a +6%
Headquarters / -744 -788a - 73 137a -47%
Consolidation
Other Businesses 296 461a -36% -4 -8a -
Total 39,966 37,258 +7% 2,146 1,583a +36%
by Division Order Intake (4) Order Book
(4)
(Amounts in millions of Euro) 9m 9m Change 30 Sept 31 Dec
Change
2013 2012 2013 2012
Airbus Division (5) 127,062 40,909a +211% 602,284 525,482a +15%
Airbus Commercial 126,410 39,359a +221% 582,691 505,333a +15%
Airbus Military 815 1,691 -52% 20,229 21,139 -4%
Eurocopter 4,177 3,586 +16% 12,986 12,942 0%
Astrium 4,250 2,866 +48% 12,895 12,734 +1%
Cassidian 2,953 3,406 -13% 14,808 15,611 -5%
Headquarters / -466 -618a - -893 -770a -
Consolidation
Other Businesses 196 260a -25% 383 494a -22%
Total 138,172 50,409 +174% 642,463 566,493 +13%
EADS - Third Quarter Results (Q3) 2013
EADS Group Q3 2013 Q3 2012 Change
Revenues, in millions 13,634 12,324 +11%
EBIT (2), in millions 663 526a +26%
Net Income (3), in millions 436 301a +45%
Earnings Per Share (EPS) (3) 0.55 0.37a +49%
by Division Revenues EBIT (2)
(Amounts in millions of Euro) Q3 Q3 Change Q3 Q3 Change
2013 2012 2013 2012
Airbus Division (5) 9,846 8,526a +15% 409 281a +46%
Airbus Commercial 9,317 8,291a +12% 429 265a +62%
Airbus Military 702 351 +100% -2 6 -133%
Eurocopter 1,548 1,345 +15% 89 77a +16%
Astrium 1,206 1,273 -5% 82 61 +34%
Cassidian 1,212 1,298 -7% 67 64a +5%
Headquarters / -269 -248a - 22 45a -51%
Consolidation
Other Businesses 91 130a -30% -6 -2a -
Total 13,634 12,324 +11% 663 526a +26%
14.11.2013 DGAP's Distribution Services include Regulatory Announcements,
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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
End of Announcement DGAP News-Service
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