Airbus Group N.V. / Key word(s): Quarter Results
13.05.2014 06:59
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Ad-hoc release, 13 May 2014
Airbus Group Reports First Quarter 2014 Results
- Revenues increase five percent to EUR 12.6 billion
- EBIT* before one-off EUR 700 million
- Net income rises 93 percent to EUR 439 million
- Airbus Group confirms guidance
Amsterdam, 13 May 2014 - Airbus Group (stock exchange symbol: AIR) reported
first quarter 2014 results reflecting the company's continued focus on
programme execution and achieving its operational milestones.
Group order intake(2) was EUR 21.1 billion (Q1 2013: EUR 49.5 billion),
with the order book(2)
value amounting to EUR 683.2 billion on 31 March, 2014 (year-end 2013: EUR
680.6 billion).
Airbus received 103 net commercial aircraft orders (Q1 2013: 410 net
orders), including 20 A380s for Amedeo. Order intake at Airbus Helicopters
rose 50 percent and was broadly stable at Airbus Defence and Space, with
good momentum seen in the Space Systems business.
"The Group made further progress in the opening quarter of 2014, with
improved revenues and earnings per share," said Airbus Group CEO Tom
Enders. "We confirm our guidance, however there are still many challenges
ahead for the rest of the year. A strong focus remains on programme
execution and the implementation of our various improvement and
restructuring plans."
Revenues increased five percent to EUR 12.6 billion (Q1 2013: EUR 12.1
billion), with all three Divisions contributing positively and Airbus
Helicopters showing a double-digit increase
as deliveries rose to 74 units (Q1 2013: 58 units). Airbus revenues
increased as a more favourable delivery mix, including two additional A380s
compared to a year earlier, offset
the overall reduction in volume to 141 commercial aircraft deliveries (Q1
2013: 144 deliveries). Airbus Defence and Space revenues rose three
percent, driven by good programme execution in Space Systems. Two Ariane 5
launches were conducted in the quarter.
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 - was EUR 700 million
(Q1 2013: EUR 734 million) and EUR 527 million for Airbus (Q1 2013: EUR 608
million). The EBIT* before one-off at Airbus reflected operational
improvement but was weighed down by a more front-loaded research and
development (R&D) expense profile and A350 XWB support costs. EBIT* before
one-off at Airbus Helicopters rose to EUR 58 million (Q1 2013: EUR 20
million), driven by increased deliveries and was stable at Airbus Defence
and Space at EUR 85 million
(Q1 2013: EUR 84 million). The Group EBIT* before one-off margin was 5.5
percent.
The A350 XWB programme is progressing towards certification, with four of
the five development aircraft now flying and over 1,600 flight test hours
accumulated. The first two customer aircraft are now in the assembly line
with certification targeted for the third quarter and entry-into-service by
the end of 2014. On the maturing A380 programme, as six year maintenance
checks have started Airbus is acting on the lessons learnt from tests and
in-service experience. At the same time, progress is being made towards
achieving the 2015 breakeven objective. Within Airbus Helicopters, the
industrial ramp-up preparation is underway on the EC175 programme with
entry-into-service targeted in the fourth quarter of 2014. At Airbus
Defence and Space, the A400M production ramp-up is ongoing with the Turkish
Air Force having taken delivery of its first aircraft in early April.
Progressive enhancement of military capability will follow with subsequent
upgrades to be agreed and concluded with customers.
Reported EBIT*(3) increased 22 percent to EUR 719 million (Q1 2013: EUR 589
million) and included a EUR 19 million positive contribution from the
dollar pre-delivery payment mismatch and balance sheet revaluation after a
negative charge of EUR 131 million a year earlier. The finance result was
EUR -107 million (Q1 2013: EUR -273 million) while net income(4) increased
to EUR 439 million (Q1 2013: EUR 227 million), or earnings per share (EPS)
of EUR 0.56 (EPS Q1 2013: EUR 0.28). Net income and EPS also reflected
favourable foreign exchange effects while EPS benefitted additionally from
the reduction in the number of shares linked to the buyback programme.
Group self-financed R&D expenses increased to EUR 727 million (Q1 2013: EUR
617 million), due mainly to the R&D profile at Airbus and increased
activity at Airbus Helicopters for the EC175 and EC145 T2 models.
Free cash flow before acquisitions improved to EUR -2,034 million (Q1 2013:
EUR -3,162 million),
but remained negative due to the seasonality of the business and working
capital requirements on key programmes. The net cash position at the end of
the first quarter was EUR 6.5 billion (year-end 2013: EUR 8.5 billion) with
a gross cash position of EUR 13.1 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. Gross commercial aircraft orders should be above
the level of deliveries. Assuming an exchange rate of EUR 1 = $ 1.35,
Airbus Group revenues should be stable compared to 2013.
Using EBIT* before one-off, Airbus Group expects moderate return on sales
growth in 2014 and confirms its 2015 return on sales target of 7-8
percent(5). 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.
Airbus Group is targeting breakeven free cash flow before acquisitions in
2014.
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 139,000 (restated). (The legal name change
from European Aeronautic Defence and Space Company EADS N.V. ("EADS N.V.")
to Airbus Group N.V. is subject to the approval of the Annual General
Meeting on 27 May, 2014).
Contacts for the media:
Martin Agüera +49 (0) 175 227 4369
Rod Stone +33 (0) 6 30 521 993
First Quarter (Q1) Results 2014
(Amounts in euro)
<pre>
Airbus Group Q1 2014 Q1 2013(1) Change
Revenues, in millions 12,648 12,094 +5%
thereof defence, in millions 2,151 2,086
EBITDA (6), in millions 1,180 1,013 +16%
EBIT (3), in millions 719 589 +22%
Research & Development expenses, 727 617 +18%
in millions
Net Income (4), in millions 439 227 +93%
Earnings Per Share (EPS) (4) 0.56 0.28 +100%
Free Cash Flow (FCF), in millions - 2,034 - 3,162 -
Free Cash Flow - 2,034 - 3,162 -
before Acquisitions, in millions
Free Cash Flow - 1,896 - 3,089 -
before Customer Financing, in millions
Order Intake (2), in millions 21,101 49,545 -57%
</pre>
<pre>
Airbus Group 31 March 31 Dec Change
2014 2013(1)
Order Book (2), in millions 683,248 680,560 0%
thereof defence, in millions 42,208 42,630
Net Cash position, in millions 6,547 8,454 -23%
Employees 138,924 138,830 0%
</pre>
<pre>
by Division Revenues EBIT (3)
(Amounts in millions of Euro) Q1 Q1 Change Q1 Q1 Change
2014 2013(1) 2014 2013(1)
Airbus 8,937 8,759 +2% 546 463 +18%
Airbus Helicopters 1,182 1,038 +14% 58 20 +190%
Airbus Defence and Space 2,743 2,664 +3% 85 84 +1%
Others / Headquarters / - 214 - 367 - 30 22 -
Eliminations
Total 12,648 12,094 +5% 719 589 +22%
</pre>
<pre>
by Division Order Intake (2) Order Book (2)
(Amounts in millions of Euro) Q1 Q1 Change 31 March 31 Dec Change
2014 2013(1) 2014 2013(1)
Airbus 17,938 46,668 -62% 628,910 625,595 +1%
Airbus Helicopters 1,202 804 +50% 12,439 12,420 0%
Airbus Defence and Space 2,068 2,160 -4% 42,588 43,208 -1%
Others / Headquarters / - 107 - 87 - - 689 - 663 -
Eliminations
Total 21,101 49,545 -57% 683,248 680,560 0%
</pre>
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) Return on sales for EBIT* before one-off, including A350 XWB dilution
with a EUR/$ exchange rate of 1.35.
6) Earnings before interest, taxes, depreciation, amortisation and
exceptionals.
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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 First Quarter 2014 Results
| Source: EQS Group AG