09 May 05. EADS (EAD) strongly improved its financial performance in the first quarter of 2005. From January to March 2005, the company reached an EBIT* (pre-goodwill and exceptionals) of €657m, more than triple the figure for the same period of 2004 (€198m). Revenues grew by 16 percent to € 7bn (Q1 2004: €6bn) driven by strong performance across all divisions. Defence revenues also grew by 16 percent. Net Cash position increased – R&D investment to remain at high level
Cash was mostly generated by stronger operating results. Free Cash Flow before customer financing has surged to € 704m (Q1 2004: €419m). The Net Cash position increased from €4.1bn at year-end 2004 to €4.3bn as of 31 March 2005. The self-financed R&D charge has decreased from € 535m in the first quarter 2004 to € 422m in the first quarter of 2005. This is in large part due to the entry to production of the A380 passenger version and the increase of R&D capitalization for the A380. R&D expenses are expected to increase in the following quarters when the A380 freighter version development ramps up. EADS recorded a Net Income of €328m (Q1 2004: €49m), or €0.41 per share, for the first quarter of 2005 (Q1 2004: € 0.06). EADS revenues rose 16 percent to €7.0bn (Q1 2004: €6.0bn) during the first three months of 2005. EADS’ order intake in the first three months amounted to nearly €9bn (Q1 2004: €3.4bn). The strong increase is mainly due to stronger Airbus and Space orders. Airbus booked 123 gross orders representing a 66 percent market share. Space orders during the first quarter 2005 included UK Ministry of Defence orders for Paradigm following key milestones achievements at Paradigm. EADS order book amounted to a total of €190.4bn at the end of March, an unprecedented level in EADS history, including € 49.7bn for defence businesses. At the end of March 2005, EADS had 110,897 employees (year-end 2004: 110,662). EADS’ institutional, military and security businesses, which are mainly part of the Space, Aeronautics, Defence and Security Systems as well as the Military Transport Aircraft Divisions, are subject to strong seasonal influences. Their revenues and earnings are usually significantly stronger towards the end of the year. The Military Transport Aircraft Division recorded an EBIT* of €-6m(Q1 2004: €-8m). Revenues reached €108m (Q1 2004: € 101m). First metal was cut for the A400M production. There was no milestone revenue in the first quarter for the A400M. The British Secretary of State for Defence announced preferred bidder status for the EADS MTA led AirTanker team on February 28th. A site selection process for an engineering centre and possible production facility for the US tanker is underway. EBIT* of the Aeronautics Division amounted to €11m (Q1 2004: €10m). While Eurocopter continued its performance improvement, the EBIT* of the Aeronautics Division has been impacted by lower performance at ATR which suffered from a weaker US $ and a soft market. Decisions about efficiency plans for EADS Sogerma Services are scheduled for the second quarter of 2005. Revenues increased by 15% driven by Eurocopter to reach € 743m (Q1 2004: €645m). The Tiger helicopter entered service with the French and German forces following its first delivery to Australia and the NH90 was selected by New Zealand, again confirming its outstanding global competitiveness. The order book increased by € 800m and stood at € 11.0 billion as of 31 March 2005. ATR strongly contributed to order book growth with an order from Air Deccan for 30 ATR72. The profit and revenue picture at the EADS SPACE Division continues to improve. EBIT* improved to €-6m (Q1 2004: €-11m) indicating that the division is on track for expected profitability improvement in 2005. The division had already achieved the turnaround in 2004 and is now set for increased profitability. First-quarter EBIT* of the Defence and Security Systems Division improved compared to the previous year and stood at €-35m (Q1 2004: €-51 m). Re