Airbus Group N.V. / Key word(s): Half Year Results
30.07.2014 06:59
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Ad-hoc release, 30 July 2014
Airbus Group Shows Continued Progress In Half-Year (H1) 2014 Results
- Revenues increase six percent to EUR 27.2 billion
- EBIT* before one-off up 10 percent to EUR 1.77 billion
- Net income rises 50 percent to EUR 1.14 billion
- 2014 guidance confirmed with Airbus net book-to-bill above 1
- 2015 return on sales guidance pre A330neo unchanged
Amsterdam, 30 July 2014 - Airbus Group (stock exchange symbol: AIR)
reported solid results for the first half of 2014, reflecting operational
improvement and the continued focus on programme execution.
Demand for the Group's products remains strong as shown at July's
Farnborough Air Show, where Airbus announced 496 aircraft orders and
commitments confirming the health of the commercial aircraft market. The
A330neo was endorsed by the market with 121 commitments announced at the
show. Group order intake(2) in the first half was EUR 27.7 billion (H1
2013: EUR 95.6 billion(1)), with the order book(2) worth EUR 677.4 billion
on 30 June, 2014 (year-end 2013: EUR 680.6 billion(1)). Airbus received 290
net commercial aircraft orders (H1 2013: 722 net orders(1)). Net order
intake at Airbus Helicopters was 148 units (H1 2013: 167 units) while in
July agreements were signed to supply 123 rotorcraft to China. Airbus
Defence and Space's order intake by value was stable, with continued
momentum in space activities and 17 light and medium transport aircraft
orders received.
"The first half of 2014 was all about keeping our main development and
series programmes on track and implementing our restructuring plans in
defence and space," said Airbus Group CEO Tom Enders. "This is shown in the
solid improvement in revenues and profitability.
We saw good commercial order momentum at Farnborough and have shown our
commitment to ensure the Group's long-term competitiveness through the
A330neo launch and the joint venture in space launchers."
Group revenues increased six percent to EUR 27.2 billion (H1 2013: EUR 25.7
billion(1)), driven by Airbus Commercial Aircraft and Airbus Helicopters
with flat revenues at Airbus Defence
and Space. Airbus' revenues rose seven percent, reflecting the increase in
deliveries to
303 aircraft (H1 2013: 295 deliveries(1)) and a more favourable mix,
including five additional A380s compared to a year earlier. Airbus
Helicopters' revenues rose eight percent as deliveries increased to 200
units (H1 2013: 190 units) including the NH90 ramp up. At Airbus Defence
and Space, satellite launches in the second quarter included the Earth
observation satellite Spot 7.
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 1,769 million (H1 2013: EUR 1,614 million(1)). It included a capital
gain of EUR 60 million from the sale of the Paris Headquarters building.
EBIT* before one-off for Airbus rose to EUR 1,287 million (H1 2013: EUR
1,231 million(1)), reflecting operational improvement but was weighed down
by A350 XWB support costs and a more front-loaded research and development
(R&D) expense profile compared to 2013. EBIT* before one-off at Airbus
Helicopters rose to EUR 150 million (H1 2013: EUR 128 million), reflecting
the Super Puma recovery and services activities. Airbus Defence and Space's
EBIT* before one-off was stable at EUR 223 million (H1 2013: EUR 216
million(1)). The Group EBIT* before one-off return on sales was 6.5 percent
(H1 2013: 6.3 percent).
The A350 XWB programme is on track for certification in the third quarter
of 2014 and
entry-into-service by year-end. All five development aircraft are now
flying with more than
2,250 flight test hours accumulated. The first A320neo is being prepared
for the first flight in September with the programme on track for
entry-into-service in the fourth quarter of 2015. Entry-into-service for
the A330neo is scheduled for the final quarter of 2017.
At Airbus Helicopters, the EC175 programme is progressing towards
entry-into-service in the fourth quarter of 2014. Airbus Defence and
Space's restructuring plan is progressing and on track. After the delivery
of Turkey's first aircraft in April and France's third in late July, the
A400M programme enters in progressive enhancement with military capability
with some delays incurred. The sequence of progressive enhancements is
under final negotiation with customers. Risks related to the cost envelope
and military functionality are being closely monitored. Airbus Group and
Safran agreed in June to create a 50:50 joint venture to improve
competitiveness in the space launcher segment. As part of a portfolio
review, Airbus Group continues to pursue disposal options for its
investment in Dassault Aviation.
Reported EBIT*(3) increased 24 percent to EUR 1,839 million (H1 2013: EUR
1,478 million(1))
and included a EUR 70 million positive contribution from the dollar
pre-delivery payment mismatch and balance sheet revaluation. The finance
result was EUR -252 million (H1 2013: EUR -417 million(1)) while net
income(4) increased to EUR 1,135 million (H1 2013: EUR 758 million(1)), or
earnings per share (EPS) of EUR 1.45 (EPS H1 2013: EUR 0.94(1)). Net income
and EPS also reflected favourable foreign exchange effects. Group
self-financed R&D expenses increased to EUR 1,564 million (H1 2013: EUR
1,399 million(1)). Free cash flow before acquisitions improved
significantly to EUR -2,270 million (H1 2013: EUR -4,060 million(1)),
reflecting tight cash control and investment in production and development
programmes. The net cash position on June 30, 2014 was EUR 5.4 billion
(year-end 2013: EUR 8.5 billion(1)) after the 2013 dividend payment of EUR
587 million and EUR 336 million pension plan contribution. The gross cash
position was EUR 13.5 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 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(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.
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 139,000 (restated).
Contacts for the media:
Martin Agüera +49 (0) 175 227 4369
Rod Stone +33 (0) 6 30 521 993
Note to editors: You can listen to the Half-Year 2014 Results Analyst
Conference Call with CEO Tom Enders and CFO Harald Wilhelm today at 10:30
a.m. CET via the Airbus Group website: www.airbusgroup.com/H12014. A
recording of the call will be made available in due course.
Airbus Group - Half-Year (H1) Results 2014
(Amounts in euro)
<pre>
Airbus Group H1 2014 H1 2013 (1) Change
Revenues, in millions 27,200 25,670 +6%
thereof defence, in millions 4,614 4,476 +3%
EBITDA (7), in millions 2,773 2,335 +19%
EBIT (3), in millions 1,839 1,478 +24%
Research & Development expenses, 1,564 1,399 +12%
in millions
Net Income (4), in millions 1,135 758 +50%
Earnings Per Share (EPS) (4) 1.45 0.94 +54%
Free Cash Flow (FCF), in millions -2,244 -4,073 -
Free Cash Flow before Acquisitions, in millions -2,270 -4,060 -
Free Cash Flow -2,112 -4,020 -
before Customer Financing, in millions
Order Intake (2), in millions 27,708 95,561 -71%
Airbus Group 30 June 31 Dec Change
2014 2013 (1)
Order Book (2), in millions 677,447 680,560 0%
thereof defence, in millions 41,223 42,630 -3%
Net Cash position, in millions 5,361 8,454 -37%
Employees 138,133 138,404 0%
by Division Revenues EBIT (3)
(Amounts in millions of Euro) H1 H1 Change H1 H1 Change
2014 2013 (1) 2014 2013 (1)
Airbus 19,429 18,102 +7% 1,357 1,095 +24%
Airbus Helicopters 2,801 2,584 +8% 150 128 +17%
Airbus Defence and Space 5,516 5,564 -1% 223 216 +3%
Headquarters / -760 -785 - 121 37 -
Eliminations
Other Businesses 214 205 +4% -12 2 -
Total 27,200 25,670 +6% 1,839 1,478 +24%
by Division Order Intake (2) Order Book (2)
(Amounts in millions of Euro) H1 H1 Change 30 June 31 Dec
Change
2014 2013 (1) 2014 2013 (1)
Airbus 22,880 89,302 -74% 625,620 625,595 0%
Airbus Helicopters 2,183 2,448 -11% 11,802 12,420 -5%
Airbus Defence and Space 3,831 3,948 -3% 41,566 43,208 -4%
Headquarters / -1,359 -284 - -1,792 -1,017 -
Eliminations
Other Businesses 173 147 +18% 251 354 -29%
Total 27,708 95,561 -71% 677,447 680,560 0%
</pre>
Airbus Group - Second Quarter Results (Q2) 2014
<pre>
Airbus Group Q2 2014 Q2 2013 (1) Change
Revenues, in millions 14,552 13,576 +7%
EBIT (3), in millions 1,120 889 +26%
Net Income (4), in millions 696 531 +31%
Earnings Per Share (EPS) (4) 0.89 0.66 +35%
by Division Revenues EBIT (3)
(Amounts in millions of Euro) Q2 Q2 Change Q2 Q2 Change
2014 2013 (1) 2014 2013 (1)
Airbus 10,492 9,343 +12% 811 632 +28%
Airbus Helicopters 1,619 1,546 +5% 92 108 -15%
Airbus Defence and Space 2,773 2,900 -4% 138 132 +5%
Headquarters / -406 -340 - 89 11 -
Eliminations
Other Businesses 74 127 -42% -10 6 -
Total 14,552 13,576 +7% 1,120 889 +26%
</pre>
Q2 2014 revenues rose seven percent compared to the second quarter of 2013
driven by higher deliveries at Airbus.
Q2 EBIT* rose 26 percent to EUR 1,120 million, mainly driven by Airbus'
operational performance while positive one-offs were higher in the quarter
compared to the second quarter of 2013.
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 IAS 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.
30.07.2014 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 Shows Continued Progress In Half-Year (H1) 2014 Results
| Source: EQS Group AG