16 Nov 09.The nine months results of EADS (stock exchange symbol: EAD) reflect the Group’s successful efforts in prudently managing operations and backlog in a currently challenging business environment. Deliveries continued to be steady across all businesses. Revenues increased slightly to €29.7bn. The EBIT* before one-off amounted to € 1.7bn. Foreign exchange effects in particular have weighed on EADS’ nine months EBIT* of €1.1bn. The order intake of € 24.6bn mirrors the present slowdown in the commercial segment. EADS’ order book of more than €378bn provides a solid platform for continued deliveries in the future. The Net Cash Position stands at € 8.1bn and strengthens the Group’s position in a volatile economic environment. “Given the challenging commercial market situation, EADS’ nine months results demonstrate the Group’s resilience in the economic crisis so far. Protecting our cash and managing the order book and deliveries – these business priorities served us well this year. I am particularly satisfied that we received the go-ahead from our customers for the Eurofighter Tranche 3a,” said Louis Gallois, CEO of EADS. “New programmes require our utmost attention. Regarding A400M, we are working with our customers to reach an acceptable solution for all parties and to put this programme on a solid long-term footing. Additionally, the A380 programme is still a matter of concern; industrial and financial reviews are underway.” Revenues of EADS stood at €29.7bn (9m 2008: €29.4bn), supported by stronger commercial aircraft deliveries at Airbus (358 units compared to 349) but offset by lower revenue recognition in the A400M programme and price deterioration on commercial aircraft deliveries. Growth at Astrium (up 17 percent) and Eurocopter (up 9 percent) contributed to the Group’s positive revenue development. EBIT* before one-off – an indicator attempting to capture the underlying margin of the business by excluding non-recurring charges or profits caused by movements in provisions or foreign exchange impacts – stood at €1.7bn (9m 2008: €2.6bn). Compared to the previous year, the volume increase and Power8 savings were more than offset by degradation of hedge rates, cost increases and the price deterioration on aircraft deliveries. Progress on the A380 is slower than expected. The Group’s EBIT* was further burdened by exceptional negative foreign exchange impacts and dropped to €1,089m (9m 2008: €2,018m). The Group achieved a Net Income of € 291 m (9m 2008: €1,082m), or earnings per share of €0.36 (earnings per share 9m 2008: €1.34).
It was weighed down by the deterioration of EBIT* and foreign exchange revaluations impacting the finance result. In total, when compared to 2008, the combination of hedging and revaluation effects resulted in a negative impact of €1.7bn on the net income before tax. Self-financed R&D expenses slightly increased to €1,834m (9m 2008: €1,792m), which underlines EADS’ constant attention to innovation. R&D is expected to ramp up in the last quarter of 2009. Free Cash Flow before customer financing dropped to €-892m (9m 2008: €1,859m) including an outflow for the A400M of €-260 m. The deterioration is mainly due to lower EBIT* before one-off, a higher ramp-up in inventory and a lower inflow of advance payments compared to the first nine months of 2008, which benefited from strong inflowing orders at Airbus and Eurocopter. Free Cash Flow in the first nine months of 2009 benefited from a healthy inflow of advance payments. Inventories have increased, notably at Airbus. Customer financing for aircraft has remained limited within the first nine months but is expected to increase in the fourth quarter. Free Cash Flow after customer financing amounts to €-1,182 m (9m 2008: €1,867m). The Group’s Net Cash position stands at €8.1bn (year-end 2008: €9.2bn) and continues to serve as a solid basis for EADS in the present market environment. In August, EADS refinanced its €1bn Eurobond which will mature in Mar