Airbus Group SE / Key word(s): Quarter Results
30.10.2015 06:59
Dissemination of an Ad hoc announcement, 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, 30 October 2015
Airbus Group Reports Strong Nine-Month (9m) 2015 Results
- Nine-month financial performance enables the Group to confirm FY
guidance
- Revenues EUR 43.0 billion; EBIT* before one-off up eight percent to EUR
2.8 billion
- Earnings per share up 35 percent to EUR 2.42
- Commercial aircraft market robust with book-to-bill above 1
- Single-aisle aircraft production rate to increase to 60/month in
mid-2019
- Board of Directors approves EUR 1 billion share buyback for completion
by mid-2016**
Airbus Group SE (stock exchange symbol: AIR) reported strong nine-month
results and confirmed its 2015 guidance.
"We again increased revenues, profitability and cash generation due to a
good operational performance. We're on track to deliver on our full year
guidance," said Tom Enders, Airbus Group Chief Executive Officer. "The
healthy commercial aircraft market, robustness of our backlog and supply
chain capability allows us to raise the single-aisle production rate to
60 a month in mid-2019. We are strongly focused on programme execution
given our key operational challenges with the A350 and A400M production
ramp-ups and A320neo. Based on operational progress, divestments
materialised and the expected cash position this year, the Board has
decided to launch a EUR 1 billion share buyback which will begin
immediately and be completed by the end of June 2016."
Group order intake(1) in the first nine months of 2015 rose 42 percent to
EUR 112 billion (9m 2014: EUR 79 billion), with the order book(1) value
reaching EUR 967 billion as of 30 September 2015 (year-end 2014: EUR 858
billion). Airbus received 815 net commercial aircraft orders (9m 2014:
791 net orders), including 87 A330 Family aircraft. The full year target of
a book-to-bill ratio above 1 is now secured. Airbus Helicopters received
181 net orders (9m 2014: 208 units) after 50 governmental helicopter
cancellations. New orders included 38 H175s and 67 H145s.
Order intake by value rose three percent at Airbus Defence and Space, with
third quarter bookings including additional satellites and four A330 MRTTs
for South Korea.
Group revenues increased six percent to EUR 43.0 billion (9m 2014: EUR 40.5
billion), reflecting the strengthening U.S. dollar and a favourable mix at
Airbus. Revenues at Commercial Aircraft rose eight percent with 446
aircraft(6) delivered (9m 2014: 443 units), including 19 A380s and five
A350 XWBs. Despite lower overall deliveries of 237 units (9m 2014: 295
units), Helicopters' revenues rose four percent due mainly to higher
government programme and services activity. Defence and Space's revenues
were broadly stable despite the de-consolidation of launcher revenues with
the creation of the Airbus Safran Launchers Joint Venture's first phase.
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 - rose eight percent to EUR 2,804 million (9m
2014: EUR 2,590 million). Commercial Aircraft's EBIT* before one-off rose
25 percent to EUR 2,226 million (9m 2014: EUR 1,780 million), driven by
operational improvement with a strong contribution from the A380 programme.
It also reflected some favourable cost phasing, including research &
development (R&D) and A350 support costs. Helicopters' EBIT* before one-off
was EUR 241 million (9m 2014: EUR 241 million), with lower deliveries and
unfavourable mix offset by services activity and progress on the
transformation plan. Defence and Space's EBIT* before one-off increased to
EUR 431 million (9m 2014: EUR 370 million), driven by good programme
execution and its transformation plan.
Group self-financed R&D expenses decreased to EUR 2,287 million (9m 2014:
EUR 2,376 million).
The A350 industrial ramp-up is progressing with Finnair becoming the third
operator in October. As the production rate increases, the focus is on
supply chain performance, controlling the level of outstanding work and the
convergence of recurring costs to target. This remains challenging. Several
interruptions have been experienced on the A320neo flight test programme
with the Pratt & Whitney engine. Certification and first deliveries are
still targeted in the fourth quarter of 2015. The focus is on the delivery
of mature aircraft and the industrial ramp-up. Breakeven on the A380 is on
track for 2015. Flight tests for the H160 helicopter are progressing as per
schedule for the planned entry-into-service in 2018. Five A400M transport
aircraft were delivered in the first nine months of 2015. The focus remains
on A400M programme execution, and addressing the challenges of military
capabilities and the industrial ramp-up.
Reported EBIT*(3) rose 14 percent to EUR 2,946 million (9m 2014: EUR 2,583
million), with net one-offs totalling a positive EUR 142 million and
comprising:
- A net charge of EUR 360 million related to the dollar pre-delivery
payment mismatch and balance sheet revaluation driven by the strong
devaluation of the euro versus the dollar compared to historical rates;
- A EUR 290 million net charge related to the A400M programme which is
unchanged compared to the first half 2015 results disclosure;
- A EUR 748 million net gain from the sale of an 18.75% stake in Dassault
Aviation(5) in the first half of 2015;
- A net gain of EUR 44 million mainly linked to divestments in Defence
and Space.
Net income(4) increased 36 percent to EUR 1,900 million (9m 2014: EUR 1,399
million) while earnings per share (EPS) rose 35 percent to EUR 2.42 (9m
2014: EUR 1.79). The finance result was EUR -536 million (9m 2014: EUR -612
million) and included one-offs totalling EUR -156 million mainly from the
revaluation of financial instruments.
Free cash flow before mergers and acquisitions improved to EUR -1,751
million (9m 2014:
EUR -2,090 million), despite the ramp-up on programmes and reflected
continued tight cash control and the seasonality of the defence and
institutional business. Proceeds of around EUR 1.7 billion in the first
half of 2015 from the sale of Dassault Aviation shares boosted nine-month
free cash flow to EUR -112 million (9m 2014: EUR -2,120 million). The net
cash position at the end of September 2015 was EUR 7.8 billion (year-end
2014: EUR 9.1 billion) after a 2014 dividend payment of
EUR 945 million (2013: EUR 587 million). The gross cash position on 30
September 2015 was EUR 17.2 billion (year-end 2014: EUR 16.4 billion).
Outlook
As the basis for its 2015 guidance, Airbus Group expects the world economy
and air traffic to grow in line with prevailing independent forecasts and
assumes no major disruptions.
Airbus deliveries should be slightly higher than in 2014, and the
commercial aircraft order book is again expected to grow.
In 2015, before mergers & acquisitions (M&A), Airbus Group expects an
increase in revenues and targets a slight increase in EBIT* before one-off.
Based on its current view of the industrial ramp-up, Airbus Group targets
breakeven free cash flow in 2015 before M&A.
Airbus Group targets its EPS and dividend per share to increase further in
2015.
* 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.
** Airbus Group SE has appointed an Investment Services Provider for the
implementation of its Share Buyback as authorised by the Annual General
Meeting of 27 May 2015. Under the terms of the Agreement signed on
30 October 2015, the parties agree that the Investment Services Provider
will sell a certain number of Airbus Group SE shares, representing a
maximum of EUR 1 billion to Airbus Group SE, which undertakes to buy them
at market price, between 2 November 2015 and 30 June 2016, with a guarantee
that the final price will reflect the arithmetic average of daily Volume
Weighted Average Price (VWAP) over the execution period less a guaranteed
discount. The price may not exceed the maximum purchase price approved by
the Annual General Meeting of 27 May 2015. All of the shares bought back
under the Agreement will be cancelled.
Airbus Group
Airbus Group is a global leader in aeronautics, space and related services.
In 2014, the Group - comprising Airbus, Airbus Defence and Space and Airbus
Helicopters - generated revenues of EUR 60.7 billion and employed a
workforce of around 138,600.
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 2015
(Amounts in euro)
<pre>
Airbus Group 9m 2015 9m 2014 Change
Revenues, in millions 42,965 40,497 +6%
thereof defence, in millions 7,476 6,917 +8%
EBITDA (2), in millions 4,574 4,022 +14%
EBIT before one-offs (3), in millions 2,804 2,590 +8%
EBIT (3), in millions 2,946 2,583 +14%
Research & Development expenses, 2,287 2,376 -4%
in millions
Net Income (4), in millions 1,900 1,399 +36%
Earnings Per Share (EPS) (4) 2.42 1.79 +35%
Free Cash Flow (FCF), in millions -112 -2,120 -
Free Cash Flow -1,751 -2,090 -
before M&A, in millions
Free Cash Flow 5 -2,191 -
before Customer Financing, in millions
Order Intake (1), in millions 111,923 78,696 +42%
</pre>
<pre>
Airbus Group 30 Sept 31 Dec Change
2015 2014
Order Book (1), in millions 966,870 857,519 +13%
thereof defence, in millions 38,230 42,240 -9%
Net Cash position, in millions 7,798 9,092 -14%
Employees 137,488 138,622 -1%
</pre>
<pre>
by Division Revenues EBIT (3)
(Amounts in millions of Euro) 9m 9m Change 9m 9m Change
2015 2014 2015 2014
Commercial Aircraft 31,119 28,820 +8% 1,902 1,773 +7%
Helicopters 4,423 4,260 +4% 241 241 0%
Defence and Space 8,383 8,197 +2% 149 370 -60%
Headquarters / Eliminations -960 -780 - 654 199 -
Total 42,965 40,497 +6% 2,946 2,583 +14%
</pre>
<pre>
by Division Order Intake (1) Order Book (1)
(Amounts in millions of Euro) 9m 9m Change 30 Sept 31 Dec Change
2015 2014 2015 2014
Commercial Aircraft 100,061 68,479 +46% 914,692 803,633 +14%
Helicopters 4,013 3,281 +22% 11,818 12,227 -3%
Defence and Space 8,483 8,227 +3% 41,657 43,075 -3%
Headquarters / Eliminations -634 -1,291 - -1,297 -1,416 -
Total 111,923 78,696 +42% 966,870 857,519 +13%
</pre>
Airbus Group - Third Quarter Results (Q3) 2015
<pre>
Airbus Group Q3 2015 Q3 2014 Change
Revenues, in millions 14,072 13,297 +6%
EBIT before one-offs (3), in millions 921 821 +12%
EBIT (3), in millions 717 744 -4%
Net Income (4), in millions 376 264 +42%
Earnings Per Share (EPS) (4) 0.48 0.34 +41%
</pre>
<pre>
by Division Revenues EBIT (3)
(Amounts in millions of Euro) Q3 Q3 Change Q3 Q3 Change
2015 2014 2015 2014
Commercial Aircraft 10,038 9,391 +7% 478 416 +15%
Helicopters 1,473 1,459 +1% 79 91 -13%
Defence and Space 2,852 2,681 +6% 175 147 +19%
Headquarters / -291 -234 - -15 90 -
Eliminations
Total 14,072 13,297 +6% 717 744 -4%
</pre>
Q3 2015 revenues rose six percent compared to the third quarter of 2014,
driven mainly by a favourable foreign exchange impact at Commercial
Aircraft.
Q3 2015 EBIT* before one-off increased 12 percent, driven by operational
improvement at Commercial Aircraft as well as some favourable cost phasing,
including R&D. It was reduced by the lower Dassault Aviation contribution
in the Headquarters/Eliminations line. Q3 reported EBIT* declined four
percent to EUR 717 million. It includes the negative one-off from foreign
exchange from the dollar pre-delivery payment mismatch and balance sheet
revaluation of EUR -215 million in Q3. The Q3 2015 net income also included
a negative impact from foreign exchange linked to the revaluation of U.S.
dollar liabilities. In Q3 2014 this negative impact was more significant.
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) The remaining Dassault Aviation participation is now recorded as an
asset held for sale and the result of the period of Dassault Aviation
will no longer contribute to the Headquarters earnings line, except for
dividends to be received and the capital gain from future sales of
Dassault Aviation shares.
6) Comprising 444 aircraft with revenue recognition and two long-range
aircraft on operating lease.
7)
8)
30.10.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and 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: ir@eads.net
Internet: www.eads.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Airbus Group SE: Airbus Group Reports Strong Nine-Month (9m) 2015 Results
| Source: EQS Group AG