Airbus Group N.V. / Key word(s): Quarter Results
14.11.2014 07:00
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Ad-hoc release, 14 November 2014
Airbus Group Reports Improved Nine-Month (9m) Results 2014
- Financial performance reflects operational progress, guidance confirmed
- Revenues increase four percent to EUR 40.5 billion
- EBIT* before one-off rises 12 percent to EUR 2.6 billion
- Net income up 16 percent to EUR 1.4 billion
- Free cash flow before acquisitions positive in Q3 2014
Airbus Group (stock exchange symbol: AIR) reported improved results for the
first nine months of 2014, driven by an enhanced operational performance
across the company.
Demand for the Group's products remains strong overall with a net
book-to-bill for commercial aircraft above 1 at the end of September,
already fulfilling the full-year target, and continued momentum seen in
defence and space. Group order intake(2) in the first nine months of 2014
was EUR 78.7 billion (9m 2013: EUR 137.0 billion(1)), with the order
book(2) worth EUR 765.4 billion
on 30 September 2014 (year-end 2013: EUR 680.6 billion(1)). Airbus received
791 net commercial aircraft orders (9m 2013: 1,062 net orders(1)). Net
order intake at Airbus Helicopters was 208 units
(9m 2013: 276 units), including 19 Super Pumas. Airbus Defence and Space's
order intake by value rose 16 percent, with strong demand seen for light
and medium transport aircraft and third quarter contracts including three
telecommunications satellites.
"An improved operational performance drove revenues and profitability
higher over the first
nine months of 2014. We achieved key operational targets such as the
certification of the A350 and first flight of the A320neo while improving
our overall cash flow profile,"
said Airbus Group CEO Tom Enders. "Nevertheless, keep in mind that going
forward we still face a number of challenges such as the transition to the
A330neo and the ramp-up of the A350
and A400M programmes, which continue to require strong management focus."
Group revenues increased four percent to EUR 40.5 billion (9m 2013: EUR
38.9 billion(1)).
Commercial Aircraft revenues rose 5.5 percent, reflecting the delivery mix
with 21 A380s delivered compared to 14 in the first nine months of 2013 and
443 aircraft delivered in total
(9m 2013: 445 deliveries). Revenues at Helicopters rose three percent with
295 deliveries
(9m 2013: 312 units), including the initial EC145 T2. Defence and Space's
revenues were stable with two successful Ariane 5 launches in the third
quarter and another taking place in October. In mid-November, the Philae
lander of the Rosetta spacecraft performed a world first by successfully
touching down on a comet.
Group 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 - improved to EUR 2,590 million (9m 2013: EUR 2,320
million(1)). Commercial Aircraft EBIT* before one-off reached EUR 1,780
million (9m 2013: EUR 1,712 million(1)), driven by operational improvement,
including progress on the A380 programme towards breakeven, and the
favourable evolution of maturing U.S. dollar hedges despite higher research
and development expenses and A350 XWB support costs.
Helicopters' EBIT* before one-off was EUR 241 million (9m 2013: EUR 217
million), reflecting the Super Puma recovery. Defence and Space's EBIT*
before one-off was EUR 370 million (9m 2013: EUR 356 million(1)).
Headquarters/Eliminations and Others' EBIT* rose to EUR 199 million (9m
2013:
EUR 35 million) and included the sale of the Paris Headquarters building in
the first half of 2014. Group EBIT* before one-off return on sales was 6.4
percent (9m 2013: 6.0 percent(1)).
The A350 XWB programme is gaining momentum with EASA and FAA type
certification achieved and remains on track for entry-into-service by
year-end. The Group continues to work on the efficient production ramp-up
with the focus on maturity and recurring cost convergence. The A320neo made
its first flight in the third quarter in line with the initial launch
schedule. Entry-into-service is expected in the fourth quarter of 2015. At
Helicopters, the EC175
is progressing towards entry-into-service in the final quarter of 2014. The
restructuring programme at Defence and Space is on track while the outcome
of the portfolio review was announced in September. Resulting disposals are
under preparation. The A400M programme industrial ramp-up is ongoing and
entering into progressive enhancements of military capabilities but with
some delays incurred. The sequence of progressive enhancements
and deliveries is under negotiation with customers and related costs, risks
and mitigation actions are under assessment. A contractual termination
right became exercisable on
1 November 2014. However, management judges that it is highly unlikely that
this termination right is exercised. Four aircraft have been delivered this
year with first deliveries now being prepared for the U.K. and Germany.
Reported EBIT*(3) increased 21 percent to EUR 2,583 million (9m 2013: EUR
2,131 million(1))
with one-offs limited to a EUR 7 million charge from the dollar
pre-delivery payment mismatch
and balance sheet revaluation. The finance result was EUR -612 million (9m
2013: EUR -435 million(1))
while net income(4) rose to EUR 1,399 million (9m 2013: EUR 1,203
million(1)), or earnings per share (EPS) of EUR 1.79 (EPS 9m 2013: EUR
1.51(1)). Net income and EPS included EUR -178 million of negative foreign
exchange revaluation before taxes, particularly in the third quarter. Group
self-financed R&D expenses totalled EUR 2,376 million (9m 2013: EUR 2,152
million(1)). Free cash flow before acquisitions improved significantly to
EUR -2,090 million (9m 2013: EUR -4,749 million(1)), reflecting tight cash
control while investing in production and development programmes. Third
quarter free cash flow before acquisitions was positive at EUR 180 million
(Q3 2013: EUR -686 million(1)).
The net cash position on 30 September 2014 was EUR 5.3 billion (year-end
2013: EUR 8.5 billion(1))
after the 2013 dividend payment of EUR 587 million and EUR 349 million
pension plan contribution.
The gross cash position on 30 September 2014 was EUR 12.4 billion.
Outlook
As the basis for its 2014 guidance, Airbus Group expects the world economy
and air traffic to grow in line with prevailing independent forecasts and
assumes no major disruptions. In 2014,
Airbus deliveries should be about the same level as in 2013, including the
first A350 XWB delivery.
Net commercial aircraft orders will be above the level of deliveries.
Assuming an exchange rate of
EUR 1 = $ 1.35, Airbus Group's revenues should be stable compared to
2013(5).
Using EBIT* before one-off, Airbus Group expects moderate return on sales
growth in 2014(5).
The 2015 return on sales target of 7-8 percent (6) is unchanged pre A330neo
development, which
is assessed to have a net impact of around -70 basis points. The EBIT* and
EPS* performance
of Airbus Group will depend on the Group's ability to limit "one-off"
charges. Going forward,
from today's point of view, the one-offs should be limited to potential
charges on the A350 XWB programme and foreign exchange effects linked to
the pre-delivery payment mismatch and balance sheet revaluation. The A350
XWB programme remains challenging. Any change to the schedule and cost
assumptions could lead to an increasingly higher impact on provisions.
On A400M, negative cost and risk evolution mostly driven by military
functionalities challenges, delays in aircraft acceptance and industrial
ramp-up together with associated mitigation actions are under assessment
and will be finalised for the 2014 full year accounts.
Airbus Group is targeting breakeven free cash flow before acquisitions in
2014.
* Airbus Group 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.
Airbus Group
Airbus Group is a global leader in aeronautics, space and related services.
In 2013, the Group - comprising Airbus, Airbus Defence and Space and Airbus
Helicopters - generated revenues of EUR 57.6 billion (restated) and
employed a workforce of around 138,000 (restated).
Contacts for the media:
Martin Agüera +49 (0) 175 227 4369
Rod Stone +33 (0) 6 30 521 993
Airbus Group - Nine Month (9m) Results 2014
(Amounts in euro)
<pre>
Airbus Group 9m 2014 9m 2013 (1) Change
Revenues, in millions 40,497 38,947 +4%
thereof defence, in millions 6,917 6,920 0%
EBITDA (7), in millions 4,022 3,440 +17%
EBIT (3) before one-off, in millions 2,590 2,320 +12%
EBIT (3), in millions 2,583 2,131 +21%
Research & Development expenses, 2,376 2,152 +10%
in millions
Net Income (4), in millions 1,399 1,203 +16%
Earnings Per Share (EPS) (4) 1.79 1.51 +19%
Free Cash Flow (FCF), in millions - 2,120 - 4,764 -
Free Cash Flow - 2,090 - 4,749 -
before Acquisitions, in millions
Free Cash Flow - 2,191 - 4,346 -
before Customer Financing, in millions
Order Intake (2), in millions 78,696 136,967 - 43%
Airbus Group 30 Sept 31 Dec Change
2014 2013 (1)
Order Book (2), in millions 765,350 680,560 +12%
thereof defence, in millions 42,215 42,630 -1%
Net Cash position, in millions 5,346 8,454 -37%
Employees 139,248 138,404 +1%
by Division Revenues EBIT (3)
(Amounts in millions of Euro) 9m 9m Change 9m 9m Change
2014 2013 2014 2013
(1) (1)
Airbus 28,820 27,328 +5% 1,773 1,523 +16%
Airbus Helicopters 4,260 4,132 +3% 241 217 +11%
Airbus Defence and Space 8,197 8,382 -2% 370 356 +4%
Headquarters / Eliminations / - 780 - 895 - 199 35 -
Others
Total 40,497 38,947 +4% 2,583 2,131 +21%
by Division Order Intake (2) Order Book (2)
(Amounts in millions of Euro) 9m 9m Cha- 30 Sept 31 Dec Cha-
2014 2013 nge 2014 2013 nge
(1) (1)
Airbus 68,479 125,964 -46% 711,825 625,595 +14%
Airbus Helicopters 3,281 4,177 -21% 11,440 12,420 -8%
Airbus Defence and Space 8,227 7,120 +16% 43,647 43,208 +1%
Headquarters / Eliminations / - 1,291 - 294 - - 1,562 - 663 -
Others
Total 78,696 136,967 -43% 765,350 680,560 +12%
Airbus Group - Third Quarter Results (Q3) 2014
Airbus Group Q3 2014 Q3 2013 (1) Change
Revenues, in millions 13,297 13,277 0%
EBIT before one-off, in millions 821 706 +16%
EBIT (3), in millions 744 653 +14%
Net Income (4), in millions 264 445 -41%
Earnings Per Share (EPS) (4) 0.34 0.56 -39%
by Division Revenues EBIT (3)
(Amounts in millions of Euro) Q3 Q3 Change Q3 Q3 Change
2014 2013 2014 2013
(1) (1)
Airbus 9,391 9,226 +2% 416 428 -3%
Airbus Helicopters 1,459 1,548 -6% 91 89 +2%
Airbus Defence and Space 2,681 2,818 -5% 147 140 +5%
Headquarters / Eliminations / - 234 - 315 - 90 - 4 -
Others
Total 13,297 13,277 0% 744 653 +14%
</pre>
Q3 2014 revenues were stable compared to the third quarter of 2013.
Q3 EBIT* increased 14 percent to EUR 744 million, driven by the performance
of Headquarters, which included a more positive contribution from Dassault
Aviation. In the third quarter of 2014, net income was reduced by negative
foreign exchange revaluation on U.S dollar liabilities.
Footnotes:
1) The 2013 figures have been restated to reflect the application of IFRS
10 and 11. Wherever necessary, Divisional figures are also restated to
reflect the new Group structure as of 1 January 2014.
2) Contributions from commercial aircraft activities to Order Intake and
Order Book based on list prices.
3) Earnings before interest and taxes, pre goodwill impairment and
exceptionals.
4) Airbus Group continues to use the term Net Income. It is identical with
Profit for the period attributable to equity owners of the parent as
defined by IFRS Rules.
5) Compared to 2013 reported figures (pre IFRS 11 restatements).
6) Return on sales for EBIT* before one-off, including A350 XWB dilution
with a EUR/$ exchange rate of 1.35.
7) Earnings before interest, taxes, depreciation, amortisation and
exceptionals.
14.11.2014 The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: Airbus Group 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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DGAP-Adhoc: Airbus Group N.V.: Airbus Group Reports Improved Nine-Month (9m) Results 2014
| Source: EQS Group AG