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Eads and Thales both announced results last week in line with expectations.


08 Mar 12. EADS (stock exchange symbol: EAD) announced better than expected results for the full year 2011. Despite a volatile macroeconomic context, EADS in 2011 continued to grow and to improve its financial performance, particularly thanks to strong commercial momentum backed by resilient air traffic figures. Defence markets in the Western world were under pressure, as anticipated. The order intake reached €131bn in 2011. EADS’ order book(5) stood at a record level of €541bn. Revenues amounted to €49.1bn. The EBIT* before one-off of around €1.8bn benefited from good performance in Airbus legacy programmes and Airbus Military as well as commercial series and services activity at Eurocopter. The reported EBIT* amounted to €1.7bn. Cash-flow generation remained strong and led to a Net Cash position of €11.7bn.

“In 2011, EADS achieved financials above expectation and demonstrated that it is a healthy growth story. The order intake in commercial aircraft has elevated our order book to record levels and I am pleased that the civilian helicopter market has also significantly gained momentum. Our strong cash generation protects the company and allowed us to secure important acquisitions, mainly in the field of services. The stage is set for EADS to turn the corner towards increased profitability”, said Louis Gallois, CEO of EADS.

“Certainly, 2012 will have challenges in store for us. We continue to devote the highest management attention to our key programmes, especially the A350. We will also have to monitor the uncertain economic environment and the outcome of discussions with governments on the future of defence procurement programmes. It is essential that these talks, notably in Germany, show fast and sound results for both sides.”

For the full year 2011, EADS’ revenues increased 7 percent to €49.1bn
(FY 2010: €45.8bn). This growth is driven by volume and mix effects at
Airbus and the increase of commercial activity at Eurocopter. These
increases more than offset a slight decrease at Astrium and Cassidian.
The overall 2011 revenue contribution from the first consolidation of the major acquisitions was around €300m, mainly Vector Aerospace and
Satair, while the EBIT* impact was insignificant. Physical deliveries remained high with 534 aircraft at Airbus Commercial, 503 helicopters at Eurocopter and the 46th consecutive successful Ariane 5 launch.

EBIT* before one-off (adjusted EBIT*) – an indicator capturing the underlying business margin by excluding non-recurring charges or profits caused by movements in provisions or foreign exchange impacts – stood at around €1.8bn (FY 2010: €1.3bn) for EADS and at around €0.5bn for Airbus (FY 2010: around €0.3bn). Compared to 2010, this represents a significant rise, despite an increase in Research & Development expenses and dollar headwind. It benefited from good performance in Airbus legacy programmes thanks to volume, mix and price improvements. Also, Airbus Military and especially Eurocopter contributed to the performance improvement, the latter mainly from its commercial series and services activity. The Headquarters EBIT* before one-off improved in 2011, mainly due to an increased allocation of management fees to Divisions and positive impacts from Group eliminations in the fourth quarter.

EADS’ reported EBIT* stood at €1,696m (FY 2010: €1,231m). At Airbus Commercial, a higher number of deliveries and better pricing more than compensated hedge rate deterioration and higher R&D. The total one-time effects at Airbus were roughly neutral. The negative impact from the A350 XWB provision was more than offset by the effects from the A340 completion and by a positive foreign exchange impact on pre-delivery payments mismatch and balance sheet revaluation. The performance of Astrium, Cassidian and Eurocopter inclu

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