DGAP-Adhoc: European Aeronautic Defence and Space Company EADS N.V.: Continued Growth: EADS Reports Strong Full Year Results 2012
| Source: Equity Story
European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Final
Results
27.02.2013 06:59
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Ad-hoc release, 27 February 2013
Continued Growth: EADS Reports Strong Full Year Results 2012
- Revenues increase 15 percent to EUR 56.5 billion
- EBIT* before one-off up 68 percent to EUR 3.0 billion
- Net Income rises 19 percent to EUR 1.2 billion
- Free Cash Flow before acquisitions EUR 1.4 billion
- Proposed dividend increases to EUR 0.60 a share
- EADS targets EUR 3.5 billion EBIT* before one-off in 2013
EADS (stock exchange symbol: EAD) achieved strong revenue and underlying
profit growth for the full year 2012. Despite a difficult macro-economic
environment, EADS saw continued momentum in its commercial activities while
defence revenues were broadly stable.
The order intake(5) totalled EUR 102.5 billion in 2012 while EADS' order
book(5) increased in value to EUR 566.5 billion at the end of the year.
Revenues amounted to EUR 56.5 billion. The EBIT* before one-off of around
EUR 3.0 billion reflected the strong operational performance at Airbus
Commercial with positive contributions from Eurocopter and Astrium. The
reported EBIT* increased to EUR 2.2 billion. The Net Cash position at the
end of the year was EUR 12.3 billion.
'EADS achieved double-digit revenue and profit growth during 2012 while the
order backlog increased further,' said EADS CEO Tom Enders. 'A strong focus
on deliveries helped to significantly improve cash generation during the
fourth quarter. Going-forward, the focus on bottom line growth remains our
priority number one as a management team. And there's still some way to go
to meet our profitability targets. If anything, the new governance, the new
shareholder structure and the new Board as of end March will further
energize the company and its employees on their successful international
growth path.'
For the full year 2012, EADS' revenues increased by 15 percent to
EUR 56.5 billion (FY 2011: EUR 49.1 billion). This strong performance was
driven mainly by higher volume and more favourable U.S. dollar rates at
Airbus Commercial as well as solid increases at Eurocopter and Astrium.
Revenues at Eurocopter and Astrium were boosted by the services businesses,
including Vector Aerospace and Vizada. The companies acquired in 2011
contributed around EUR 1.5 billion to the 2012 revenues. Despite the
overall defence environment, defence revenues were flat compared to 2011.
Physical deliveries remained strong with a record 588 aircraft for Airbus
Commercial, 29 aircraft for Airbus Military, 475 helicopters at Eurocopter
and the 53rd consecutive successful Ariane 5 launch.
EBIT* before one-off (adjusted EBIT*) - 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 sharply to EUR 3.0
billion (FY 2011: EUR 1.8 billion) for EADS and to around EUR 1.8 billion
for Airbus (FY 2011: around EUR 0.5 billion).
The Group performance was driven by the strong underlying performance at
Airbus Commercial while Eurocopter and Astrium also delivered absolute
increases to the EBIT* before one-off.
EADS' reported EBIT* increased to EUR 2,186 million (FY 2011: EUR 1,696
million) with one-off charges totalling EUR 820 million booked during the
year.
Of these total one-off charges, EUR 522 million were booked at Airbus
during 2012, including the anticipated EUR 251 million on the A380 related
to the wing rib feet repair. The A350 XWB charge of EUR 124 million to
reflect the latest programme update is unchanged since H1 2012. Good
progress is being made on the A350 XWB programme but it remains challenging
and there is no room left in the schedule. Also included are the EUR 76
million charges related to the Hawker Beechcraft Programme closure booked
in the third quarter and a EUR 71 million charge for the foreign exchange
impact on pre-delivery payments mismatch and balance sheet revaluation. At
Eurocopter, the on-going renegotiation of certain contracts for
governmental customers resulted in a EUR 100 million charge in the fourth
quarter. At Cassidian, a total of EUR 198 million of charges were booked in
the final quarter to reflect restructuring costs in line with the business
transformation (EUR 98 million) and a charge related to portfolio
de-risking (EUR 100 million), in particular for the secure systems and
solutions business.
Net Income increased by 19 percent to EUR 1,228 million (FY 2011:
EUR 1,033 million), or earnings per share of EUR 1.50 (earnings per share
FY 2011: EUR 1.27). The Net Income* before one-off(4) increased to EUR
1,838 million (FY 2011: EUR 1,132 million). These increases reflect the
improvement in the underlying operating performance.
The finance result amounted to EUR -453 million (FY 2011: EUR -220
million). The 2012 interest result of EUR -285 million (FY 2011: EUR 13
million) deteriorated partly due to lower interest income as a function of
the high quality of investments. In addition, the 2011 interest result
included a positive one-time release of EUR 120 million due to the
termination of the A340 programme. The other financial result amounts to
EUR -168 million (FY 2011: EUR -233 million), reflecting an improved impact
from the foreign exchange revaluation compared to 2011. This line also
includes the unwinding of discounted provisions.
Based on Earnings per Share (EPS) of EUR 1.50, the EADS Board of Directors
proposes payment on 5 June 2013 of a dividend of EUR 0.60 per share to the
Annual General Meeting of shareholders (FY 2011: EUR 0.45 per share). The
record date should be 4 June 2013.
'This proposed dividend increase reflects the progress the Group made
during 2012,' said Harald Wilhelm, CFO of EADS. 'We are focused on
delivering value to our shareholders.'
Self-financed Research & Development (R&D) expenses remained broadly stable
at EUR 3,142 million (FY 2011: EUR 3,152 million), due to IAS38
capitalisation of EUR 366 million on the A350 XWB. The focus continues on
major development programmes across the portfolio, in particular the A350
XWB and at Eurocopter.
Free Cash Flow before acquisitions of EUR 1,449 million exceeded
expectations. The traditional end of year seasonal payment pattern has been
very strong. It resulted in a strong positive swing in fourth quarter
working capital thanks to the high delivery performance and stream of
advances and receipts from commercial and government customers. Gross cash
flow from operations reflects the strong underlying performance during the
year.
The level of capital expenditure was EUR 3.3 billion, reflecting the ramp
up in development and series programmes as the company builds capacity for
future volume driven top and bottom line growth. It also includes the
capitalised R&D under IAS38. Despite the record level of commercial
aircraft deliveries, EADS' customer financing gross exposure was broadly
stable compared to the 2011 level.
EADS' Net Cash position increased to a solid EUR 12.3 billion (year-end
2011: EUR 11.7 billion) after a cash contribution of EUR 856 million to
pension assets and the dividend payment of about EUR 370 million.
EADS' order intake(5) amounted to EUR 102.5 billion (FY 2011: EUR 131.0
billion) and reflected continuing commercial momentum across the EADS
portfolio. Airbus Military, Eurocopter, Astrium and Cassidian all recorded
year-on-year increases in order intake while Airbus Commercial exceeded its
order target, booking 914 gross orders for 2012. At the end of December
2012, the Group's order book(5) had increased by 5 percent to EUR 566.5
billion (year-end 2011: EUR 541.0 billion). The defence order book
decreased to EUR 49.6 billion (year-end 2011: EUR 52.8 billion).
At the end of December 2012, EADS had a total of 140,405 employees
(year-end 2011: 133,115).
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 disruption due to the current sovereign debt crisis.
In 2013, gross commercial aircraft orders should be above the number of
deliveries, in the range of 700 aircraft. Airbus deliveries should continue
to grow to between 600 and 610 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 proposed share buyback.
Excluding the known wing rib feet A380 impact in 2013 of around EUR 85
million 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 and foreign exchange effects linked to PDP mismatch and balance
sheet revaluation.
The A350 XWB programme remains challenging. Any schedule change could lead
to an increasingly higher impact on provisions.
EADS aims to be Free Cash Flow breakeven after customer financing and
before acquisitions in 2013.
* 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 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 - Full Year (FY) Results 2012
(Amounts in euro)
<pre>
EADS Group FY 2012 FY 2011 Change
Revenues, in millions 56,480 49,128 +15%
thereof defence, in millions 11,605 11,561 0%
EBITDA (1), in millions 4,184 3,520 +19%
EBIT (2), in millions 2,186 1,696 +29%
Research & Development expenses, in millions 3,142 3,152 0%
Net Income(3), in millions 1,228 1,033 +19%
Earnings Per Share (EPS) (3) 1.50 1.27 0.23 EUR
Free Cash Flow (FCF), in millions 1,248 958 +30%
Free Cash Flow before Acquisitions, in 1,449 2,493 -42%
millions
Free Cash Flow before Customer Financing, in 1,394 823 +69%
millions
Dividend per share 0.60(7) 0.45 +0.15
EUR
Order Intake (5), in millions 102,471 131,027 -22%
EADS Group 31 31 Change
Dec2012 Dec2011
Order Book (5), in millions 566,493 540,978 +5%
thereof defence, in millions 49,570 52,775 -6%
Net Cash position, in millions 12,292 11,681 +5%
Employees 140,405 133,115 +5%
</pre>
<pre>
by Division Revenues EBIT (2)
(Amounts in millions of Euro) FY2012 FY2011 Change FY2012 FY2011 Change
Airbus Division (6) 38,592 33,103 +17% 1,230 584 +111%
Airbus Commercial 36,943 31,159 +19% 1,125 543 +107%
Airbus Military 2,131 2,504 -15% 93 49 +90%
Eurocopter 6,264 5,415 +16% 311 259 +20%
Astrium 5,817 4,964 +17% 312 267 +17%
Cassidian 5,740 5,803 -1% 142 331 -57%
Headquarters / Consolidation -1,457 -1,409 - 142 196 -
Other Businesses 1,524 1,252 +22% 49 59 -17%
Total 56,480 49,128 +15% 2,186 1,696 +29%
</pre>
<pre>
by Division Order Intake (5) Order Book (5)
(Amounts in millions of FY2012 FY2011 Change 31 31 Change
Euro) Dec2012 Dec2011
Airbus Division (6) 88,142 117,874 -25% 523,410 495,513 +6%
Airbus Commercial 86,478 117,301 -26% 503,218 475,477 +6%
Airbus Military 1,901 935 +103% 21,139 21,315 -1%
Eurocopter 5,392 4,679 +15% 12,942 13,814 -6%
Astrium 3,761 3,514 +7% 12,734 14,666 -13%
Cassidian 5,040 4,168 +21% 15,611 15,469 +1%
Headquarters/
Consolidation -1,413 -1,233 - -1,112 -1,467 -
Other Businesses 1,549 2,025 -24% 2,908 2,983 -3%
Total 102,471 131,027 -22% 566,493 540,978 +5%
</pre>
EADS - Fourth Quarter Results (Q4) 2012
(Amounts in euro)
<pre>
EADS Group Q4 2012 Q4 2011 Change
Revenues, in millions 19,222 16,441 +17%
EBIT (2), in millions 571 811 -30%
Net Income(3), in millions 325 612 -47%
Earnings Per Share (EPS) (3) 0.40 0.75 -0.35 EUR
</pre>
<pre>
by Division Revenues EBIT (2)
(Amounts in millions of Euro) Q42012 Q42011 Change Q42012 Q42011 Change
Airbus Division (6) 12,971 10,692 +21% 393 289 +36%
Airbus Commercial 12,218 10,039 +22% 309 237 +30%
Airbus Military 937 757 +24% 85 44 +93%
Eurocopter 2,148 1,957 +10% 34 102 -67%
Astrium 1,883 1,524 +24% 121 102 +19%
Cassidian 2,256 2,384 -5% -14 161 -109%
Headquarters / Consolidation -493 -535 - 3 118 -
Other Businesses 457 419 +9% 34 39 -13%
Total 19,222 16,441 +17% 571 811 -30%
</pre>
27.02.2013 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
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