Airbus Group SE / Key word(s): Quarter Results
26.10.2016 06:59
Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Ad-hoc release, 26 October 2016
Airbus Group Reports Nine-Month (9m) 2016 Results
- Healthy orders and backlog support production ramp-up
- Aircraft delivery schedule heavily back-loaded to Q4
- 9m financials reflect ongoing ramp-up and transition from current to
new aircraft models
- Revenues EUR 43 billion; EBIT* before one-off EUR 2.4 billion; Earnings
per share EUR 2.34
- 2016 earnings guidance maintained**
- Free cash flow guidance maintained excluding the impact from aircraft
financing**
Airbus Group SE (stock exchange symbol: AIR) reported nine-month 2016
results which reflect the ongoing ramp-up and transition from current to
new aircraft models (NEO).
"As expected the nine-month performance reflects the heavily back-loaded
aircraft delivery schedule, ongoing production ramp-up and transition to
new versions of our A320 and A330 aircraft," said Tom Enders, Airbus Group
Chief Executive Officer. "For the remaining months of the year we remain
totally focused on deliveries to achieve our earnings and cash guidance.
The commercial environment continues to be rather healthy, with a backlog
of more than 6,700 aircraft supporting our production plans and reflecting
the strength of the product portfolio. Further integration of the group, as
recently decided, will simplify the company's governance and improve
competitiveness."
Group order intake(1) in the first nine months of 2016 was EUR 73.2 billion
(9m 2015: EUR 111.9 billion), with the order book(1) value totalling EUR
986 billion as of 30 September 2016 (year-end 2015:
EUR 1,006 billion). Airbus received 380 net commercial aircraft orders (9m
2015: 815 net orders) with gross orders of 566 aircraft including 35 A350
XWBs and 14 A330neos. In the third quarter alone, 250 gross orders were
booked for A320neo (new engine option) Family aircraft. Airbus Helicopters
received 211 net orders (9m 2015: 181 net orders), including 47 H145s and
42 H135s. In August, an agreement was announced by Kuwait for 30 H225M
Caracal helicopters. Defence and Space saw good order momentum,
particularly in Space, while an agreement was signed with the Netherlands
and Luxembourg for two A330 MRTT aircraft.
Group revenues were stable at EUR 42.7 billion (9m 2015: EUR 43.0 billion).
Revenues at Commercial Aircraft reflected higher A350 and A320 volumes but
lower A330s and were supported by the more favourable US dollar
environment. In all, 462 commercial aircraft were delivered (9m 2015: 446
aircraft). Despite increased deliveries of 258 (9m 2015: 237 units),
Helicopters' revenues declined three percent, reflecting a higher
proportion of light helicopters and lower commercial flight hours in
services. Airbus Defence and Space's revenues declined eight percent,
reflecting the negative impact of the perimeter change from portfolio
reshaping of around EUR -450 million but were broadly stable on a
comparable basis. Eleven A400M military transport aircraft were delivered
in the nine month period.
Group EBIT* before one-off(3) - 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 - amounted to EUR 2,415 million (9m 2015: EUR
2,804 million).
Commercial Aircraft's EBIT* before one-off was EUR 1,838 million (9m 2015:
EUR 2,226 million), driven by the lower A330 rate, delivery profile,
transition pricing on A330 and A320, and higher ramp-up costs, while
research and development (R&D) costs decreased.
On the A350 programme, 26 aircraft were delivered over the nine month
period with 14 in the third quarter alone. Good progress was made over the
summer in terms of risk management to bring down the level of outstanding
work in the final assembly line. Difficulties remain in the supply chain
with work continuing on recurring cost convergence during the ramp-up. The
company remains focused on these short-term challenges as it works towards
achieving the A350 delivery target. A total of 24 A320neos were delivered
from January to end September with the first CFM-engined aircraft delivered
in the third quarter. The early teething problems with the Pratt & Whitney
(P&W) engine are now largely over but P&W is facing some industrial ramp-up
challenges which puts more pressure on the back-loading of the delivery
profile. Firm commitments have been received from both engine suppliers to
meet the NEO schedule and the airframes are well on track for on-time
delivery to customers.
In Helicopters, EBIT* before one-off was EUR 200 million (9m 2015: EUR 241
million), burdened by an unfavourable mix and lower commercial flight hours
in services as well as the H225 accident in Norway and some campaign costs.
However, the underlying profit at Helicopters continues to be supported by
ongoing transformation measures and efforts to adapt to market challenges.
Defence and Space's EBIT* before one-off was EUR 440 million (9m 2015: EUR
431 million) after the perimeter change from portfolio reshaping. On a
comparable perimeter, EBIT* before one-off benefited from a better contract
mix and risk reduction and restructuring efforts that have been implemented
in the Division.
On the A400M, progress is being made on the industrial side in terms of
capability development and programme governance although the overall
programme situation remains challenging. The fleet has now completed 10,000
in-service flight hours. Commercial negotiations with OCCAR and the Nations
are yet to take place with regard to the revised delivery schedule and its
implications. As of today, the outcome of these negotiations cannot be
reliably estimated.
Group self-financed R&D expenses declined to EUR 2,015 million (9m 2015:
EUR 2,287 million).
Reported EBIT*(3) of EUR 2,363 million (9m 2015: EUR 2,946 million)
included net one-offs totalling EUR -52 million. For the first nine months
of 2016, a negative impact of EUR 723 million was recorded related to the
dollar pre-delivery payment mismatch and balance sheet revaluation, while a
total net capital gain of EUR 75 million was booked related to portfolio
adjustments mainly at Defence and Space. The remaining one-offs were
unchanged since the half-year 2016 results.
Net income(4) was EUR 1,811 million (9m 2015: EUR 1,900 million) with
earnings per share of EUR 2.34 (9m 2015: EUR 2.42). The finance result was
EUR -342 million (9m 2015: EUR -536 million).
Free cash flow before mergers and acquisitions amounted to EUR -4,729
million (9m 2015:
EUR -1,751 million), reflecting the investment in programmes for the fourth
quarter deliveries and further ramp-up in 2017, in particular for A320 and
A350. It also includes a significant cash burden for the A400M and around
EUR 500 million of aircraft financing, which is mainly a reflection of the
current suspension of Export Credit Agency financing. Airbus Group
continues to work with the ECAs on a process to resume financing, but given
the progress so far, the timing and quantum are still uncertain.
Free cash flow of EUR -2,649 million (9m 2015: EUR -112 million) includes
EUR 1.2 billion in proceeds from the sale of Dassault Aviation shares, EUR
750 million from the implementation of phase 2 of the Airbus Safran
Launchers JV and EUR 310 million from the sale of the Business
Communication business. The net cash position on 30 September 2016 was EUR
5.6 billion (year-end 2015: EUR 10.0(5) billion) with a gross cash position
of EUR 16.9 billion (year-end 2015: EUR 19.1(5) billion).
Outlook
As the basis for its 2016 guidance, Airbus Group expects the world economy
and air traffic to grow in line with prevailing independent forecasts,
which assume no major disruptions.
Airbus Group maintains its 2016 earnings guidance based on a constant
perimeter.
Airbus Group maintains its 2016 free cash flow guidance based on a constant
perimeter, excluding the impact from aircraft financing.
- Airbus expects to deliver more than 650 aircraft and the commercial
order book is expected to grow.
- Before M&A, Airbus Group expects stable EBIT* before one-off and EPS*
before one-off compared to 2015.
- Before M&A and customer financing, Airbus Group expects to deliver
stable free cash flow compared to 2015.
The perimeter change in Airbus Defence and Space implemented at H1 2016 is
expected to reduce EBIT* before one-off and free cash flow before M&A by
around EUR 200 million and EPS* before one-off by around 20 cents.
* 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 former EADS merger and Airbus Combination, as well as impairment
charges thereon.
** On a constant perimeter.
About Airbus Group
Airbus Group is a global leader in aeronautics, space and related services.
In 2015, the Group - comprising Airbus, Airbus Defence and Space and Airbus
Helicopters - generated revenues of EUR 64.5 billion and employed a
workforce of around 136,600.
Contacts for the media:
Martin Agüera +49 (0) 175 227 4369
Rod Stone +33 (0) 6 3052 1993
Note to editors: Live Webcast of the Airbus Group Analyst Conference Call
You can listen to the Nine-Month 2016 Results Analyst Conference Call with
Chief Financial Officer Harald Wilhelm at 08:30 a.m. CEST today via the
Airbus Group website: www.airbusgroup.com/9M2016. The analyst call
presentation can be found on the company website. A recording will be made
available in due course. For a reconciliation of Airbus Group's KPIs to
"reported IFRS" please refer to the analyst presentation.
Airbus Group - Nine-Month (9m) Results 2016
(Amounts in Euro)
<pre>
Airbus Group 9m 2016 9m 2015 Change
Revenues, in millions 42,705 42,965 -1%
thereof defence, in 7,190 7,476 -4%
millions
EBITDA (2), in millions 3,936 4,574 -14%
EBIT before one-off 2,415 2,804 -14%
(3), in millions
EBIT (3), in millions 2,363 2,946 -20%
Research & Development 2,015 2,287 -12%
expenses,
in millions
Net Income (4), in 1,811 1,900 -5%
millions
Earnings Per Share 2.34 2.42 -3%
(EPS) (4)
Free Cash Flow (FCF), -2,649 -112 -
in millions
Free Cash Flow -4,729 -1,751 -
before M&A, in millions
Free Cash Flow -2,104 5 -
before Customer
Financing, in millions
Order Intake (1), in 73,218 111,923 -35%
millions
Airbus Group 30 Sept 31 Dec Change
2016 2015
Order Book (1), in 986,001 1,005,864 -2%
millions
thereof defence, in 36,287 38,411 -6%
millions
Net Cash position, in 5,553 10,003(5) -44%
millions
Employees 132,973 136,574 -3%
</pre>
<pre>
by Division Revenues EBIT (3)
(Amounts in 9m 9m Change 9m 9m Change
millions of Euro) 2016 2015 2016 2015
Commercial 31,511 31,119 +1% 775 1,902 -59%
Aircraft
Helicopters 4,282 4,423 -3% 200 241 -17%
Defence and Space 7,714 8,383 -8% 583 149 +291%
Headquarters / -802 -960 - 805 654 -
Eliminations
Total 42,705 42,965 -1% 2,363 2,946 -20%
</pre>
<pre>
by Division EBIT before one-off(3)
(Amounts in millions of Euro) 9m 9m Change
2016 2015
Commercial Aircraft 1,838 2,226 -17%
Helicopters 200 241 -17%
Defence and Space 440 431 +2%
Headquarters / Eliminations -63 -94 -
Total 2,415 2,804 -14%
</pre>
<pre>
by Division Order Intake (1) Order Book (1)
(Amounts in 9m 9m Change 30 31 Dec Change
millions of 2016 2015 Sept 2015
Euro) 2016
Commercial 63,103 100,061 -37% 939,079 952,450 -1%
Aircraft
Helicopters 3,588 4,013 -11% 11,075 11,769 -6%
Defence and 8,189 8,483 -3% 38,355 42,861 -11%
Space
Headquarters / -1,662 -634 - -2,508 -1,216 -
Eliminations
Total 73,218 111,923 -35% 986,001 1,005,864 -2%
</pre>
Airbus Group - Third Quarter Results (Q3) 2016
(Amounts in Euro)
<pre>
Airbus Group Q3 2016 Q3 2015 Change
Revenues, in millions 13,950 14,072 -1%
EBIT before one-off (3), in 731 921 -21%
millions
EBIT (3), in millions 507 717 -29%
Net Income (4), in millions 50 376 -87%
Earnings Per Share (EPS) (4) 0.06 0.48 -88%
by Division Revenues EBIT (3)
(Amounts in millions Q3 Q3 Change Q3 Q3 Change
of Euro) 2016 2015 2016 2015
Commercial Aircraft 10,450 10,038 +4% 354 478 -26%
Helicopters 1,595 1,473 +8% 56 79 -29%
Defence and Space 2,274 2,852 -20% 105 175 -40%
Headquarters / -369 -291 - -8 -15 -
Eliminations
Total 13,950 14,072 -1% 507 717 -29%
</pre>
<pre>
by Division EBIT before one-off(3)
(Amounts in millions of Euro) Q3 Q3 Change
2016 2015
Commercial Aircraft 568 693 -18%
Helicopters 56 79 -29%
Defence and Space 115 164 -30%
Headquarters / -8 -15 -
Eliminations
Total 731 921 -21%
</pre>
Q3 2016 revenues were stable compared to Q3 2015 as the changes from
portfolio reshaping at Defence and Space (around EUR -450 million) were
compensated by increases at Commercial Aircraft and Helicopters. Q3 2016
EBIT* before one-off declined 21 percent, mainly reflecting the back-loaded
delivery profile, lower A330 production rate, transition pricing and ramp-
up costs. It was positively compensated by an R&D tailwind. It also
includes the impact from portfolio reshaping at Defence and Space.
Q3 2016 reported EBIT* decreased by 29 percent. It mainly reflects negative
one-offs of around EUR -200 million both in Q3 2016 and Q3 2015 related to
foreign exchange effects from the dollar pre-delivery payment mismatch and
balance sheet revaluation. Q3 2016 net income was negatively influenced by
a high Q3 effective tax rate.
Footnotes:
1) Contributions from commercial aircraft activities to Order Intake and
Order Book based on list prices.
2) Earnings before interest, taxes, depreciation, amortisation and
exceptionals.
3) Earnings before interest and taxes, pre goodwill impairment and
exceptionals.
4) Airbus Group continues to use the term Net Income. It is identical to
Profit for the period attributable to equity owners of the parent as
defined by IFRS Rules.
5) Excluding reclassification of certain securities.
Safe Harbour Statement:
Certain statements contained in this press release are not historical facts
but rather are statements of future expectations and other forward-looking
statements that are based on management's beliefs. These statements reflect
Airbus Group's views and assumptions as of the date of the statements and
involve known and unknown risk and uncertainties that could cause actual
results, performance or events to differ materially from those expressed or
implied in such statements.
When used in this press release, words such as "anticipate", "believe",
"estimate", "expect", "may", "intend", "plan to" and "project" are intended
to identify forward-looking statements.
This forward looking information is based upon a number of assumptions
including without limitation: assumption regarding demand, current and
future markets for Airbus Group's products and services, internal
performance, customer financing, customer, supplier and subcontractor
performance or contracts negotiations, favourable outcomes of certain
pending sales campaigns. Forward looking statements are subject to
uncertainty and actual future results and trends may differ materially
depending on variety of factors including without limitation: general
economic and labour conditions, including in particular economic conditions
in Europe, North America and Asia, legal, financial and governmental risk
related to international transactions, the cyclical nature of some of
Airbus Group's businesses, volatility of the market for certain products
and services, product performance risks, collective bargaining labour
disputes, factors that result in significant and prolonged disruption to
air travel worldwide, the outcome of political and legal processes,
including uncertainty regarding government funding of certain programs,
consolidation among competitors in the aerospace industry, the cost of
developing, and the commercial success of new products, exchange rate and
interest rate spread fluctuations between the euro and the U.S. dollar and
other currencies, legal proceeding and other economic, political and
technological risk and uncertainties. Additional information regarding
these factors is contained in the Company's "Registration Document" dated 5
April 2016. For more information, please refer to www.airbusgroup.com.
26.10.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Airbus Group SE
P.O. Box 32008
2303 DA Leiden
Netherlands
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
E-mail:
Internet: www.airbusgroup.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of Announcement DGAP News-Service
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DGAP-Adhoc: Airbus Group SE: Airbus Group Reports Nine-Month (9m) 2016 Results
| Source: EQS Group AG