Ad-hoc release, 9 November 2005: EADS – 9-month results 2005
EADS delivers strong 9-month performance and raises earnings guidance for 2005
- EBIT*: EUR 2.1 billion, up 41 percent
- Revenues: EUR 23.4 billion, up 9 percent
- Net Income: EUR 1.0 billion, up 74 percent
- Order intake: EUR 38.8 billion, up 88 percent
Amsterdam, 09 November 2005
EADS continues to deliver strong operational and financial performance. EADS achieved an EBIT* of EUR 2.1 billion in the first nine months of 2005, 41 percent higher than for the same period of 2004 (9/2004: EUR 1.5 billion). The EBIT* margin has increased from seven percent to nine percent.
The strong EADS performance is due to the further increase in Airbus deliveries, high revenues and earnings in its defence businesses as well as continued profitability improvement in its Space Division.
These robust earnings have allowed EADS to raise its 2005 EBIT* target to EUR 2.75 billion (FY 2004: EUR 2.43 billion**) and its earnings per share (EPS) to around EUR 1.65 for the full year 2005 (FY 2004: EUR 1.27**). EADS also expects its revenues to grow to more than EUR 33 billion and its Free Cash Flow to remain robust.
Strong EBIT* improvement
The strong EBIT* improvement was mainly driven by Airbus which benefited mainly from higher aircraft deliveries (271 in the first nine months of 2005, compared to 224 in the same period of 2004) and increased cost savings from the Route06 programme. The EBIT* increase also benefits from better results of the Defence & Security Systems and the Space Division as well as from a higher contribution from EADS’ 46.30 percent stake in Dassault Aviation. EBIT* grew in spite of a less favourable first nine month average hedge rate of EUR 1 = USD 1.04 (9/2004: EUR 1 = USD 0.99).
Net Cash remains robust
Free Cash Flow before customer financing amounted to EUR 1.4 billion in the first nine months (9/2004: EUR 147 million). EADS' Net Cash position was slightly higher than at the end of H1 2005 and amounted to EUR 4.7 billion (year-end 2004: EUR 4.1 billion).
Net income of EUR 1.025 billion – Earnings per share EUR 1.29
EADS recorded a 9-month Net Income of EUR 1.025 billion (9/2004: EUR 588 million), or EUR 1.29 per share (9/2004: EUR 0.73) thanks to strong EBIT* increase and finance result improvement.
EADS order intake up 88 percent
The EADS order intake from January to September 2005 grew significantly by 88 percent to EUR 38.8 billion (9/2004: EUR 20.6 billion). At EUR 210.4 billion, the EADS order book continued to grow (year-end 2004: EUR 184.3 billion).
Outlook
For the full year 2005, EADS raises its EBIT* target to EUR 2.75 billion, from a previous target of “more than EUR 2.6 billion”.
The change in EBIT* outlook reflects Airbus delivery increase to 370 aircraft in 2005, most of the growth occurring in the single-aisle category. It also incorporates higher than expected losses at EADS Sogerma Services and additional charges in the Defence & Security Systems Division related to two Unmanned Aerial Vehicle (UAV) programmes in the last quarter of 2005.
EADS expects its 2005 revenues to grow to more than EUR 33 billion. In 2004, EADS achieved revenues of EUR 31.8 billion. EADS’ group-wide defence revenues should increase by 10 percent during the course of the year to EUR 8.5 billion.
Continuing the strong cash flow generation in 2004, Free Cash Flow before Customer Financing is expected to remain robust in 2005.
2005 EPS are expected to grow to around EUR 1.65, based on an expected average of around 800 million shares. This EPS target is partly dependent on the 2005 US dollar closing rate. The previous EPS target was “more than EUR 1.50” for the full year 2005. The updated EPS guidance reflects mostly the higher EBIT* target.
*
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.
**
Previous year restated by stock options expense according to first time application of IFRS 2
Contact:
| Rainer Ohler | EADS |
Tel.: +49 89 60 73 42 35 |
