14 Nov 13. EADS (stock exchange symbol: EAD) reported higher revenues and profits for the first nine months of 2013, driven by the strong momentum within its commercial aircraft activities.
Order intake(4) more than doubled to €138.2bn with the order book value reaching €642.5bn at the end of September. The Net Cash position was
€5.2bn on 30 September, 2013.
“We achieved a good improvement in revenues and profitability over the first nine months thanks largely to our civil aircraft business,” said EADS CEO Tom Enders. “However, we have significant challenges ahead of us, particularly with respect to cash generation and to the A350 XWB programme, which has entered the next critical phase. I am pleased with the progress made in the reorganisation of the Group’s defence and space businesses into the new Airbus Defence and Space Division and we will provide a further update on this before the end of the year.”
Over the first nine months of 2013, EADS’ revenues increased 7 percent to €40.0bn (9m 2012: €37.3bn), reflecting the aircraft delivery pattern at Airbus Commercial and increasing activity at Airbus Military (A400M). Revenues were broadly stable at Eurocopter, Astrium and Cassidian.
EBIT* before one-off – 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 – increased to €2.3bn (9m 2012: €1.9bn) for EADS and to €1.7bn for Airbus (9m 2012: €1.2bn). This improvement reflected the solid operational performance at Airbus Commercial. The Group EBIT* before one-off margin was 5.8 percent.
EADS’ reported EBIT* increased to €2.1bn (9m 2012: €1.6bn). One-off charges were limited to the known impact related to the A380 wing rib feet issue and the pre-delivery payment (PDP) dollar mismatch and balance sheet revaluation at Airbus. The finance result was € -445 m (9m 2012: €-337m) while net income(3) increased to € 1,195m (9m 2012: €880ma), or earnings per share of €1.50 (earnings per share 9m 2012: €1.08a). Self-financed Research & Development (R&D) expenses increased
slightly to €2,179m (9m 2012: €2,145m).
Free Cash Flow before acquisitions amounted to €-4,815m (9m 2012:
€3,235m), reflecting the working capital evolution linked to delivery phasing, industrial ramp-up, some customer financing activity and the seasonality of the group’s government business. Capital expenditure of
€2.1bn was mainly driven by progress on A350 XWB development aircraft and includes development costs capitalised under IAS 38 of €196m for the A350 XWB. EADS finished the first nine months of 2013 with a Net Cash position of €5.2bn (year-end 2012: €12.3bn) after taking into account the €1.9bn used to fund the share buyback programme and the 2012 dividend payment of €468m. The gross cash balance on 30 September was €12.5bn, providing financial flexibility and security.
EADS’ order intake(4) rose sharply to €138.2bn (9m 2012: €50. bn), as
the strong commercial momentum continued into the third quarter, particularly at Airbus. Eurocopter saw some recovery in commercial bookings in the third quarter while Astrium reported significant order momentum. By the end of September 2013, the total order book(4) had risen in value to €642.5bn (year-end 2012: €566.5bn). The defence order book amounted to € 47.7bn (year-end 2012: €49.6bn).
As of 30 September 2013, EADS had 144,156 employees (year-end 2012:
As the basis for its 2013 guidance, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions. Based on the nine month results, EADS has made several adjustments to its full year guidance.
In 2013, gross commercial aircraft orders should be above 1,200 aircraft. Airbus deliveries are expected to be up to 620 commercial aircraft.
Due to lower A380 deliveries and assumin