|Revenues||more than € 44 billion|
|Airbus deliveries||around 500 aircraft|
|Airbus gross orders||above 400|
|EBIT *||1 bn €|
|EBIT* before one-off||around € 1.2 billion|
|Free Cash Flow before customer financing||break even|
|Free Cash Flow||negative|
EADS’ guidance is based on an assumption of €1 = $1.35 for the H2 average and December closing spot rates.
The Group is increasing its guidance for orders, revenues, underlying profitability and free cash-flow.
Given the recent commercial success at Farnborough and the number of on-going campaigns, Airbus has increased its full year target for gross orders to above 400. Single aisle production rates will go up to 36 a month at the end of this year, to 38 in Q3 2011 and to 40 a month in Q1 2012.
On the other hand, the civil helicopter market and its related order stream are expected to be sluggish in H2 2010. At this stage, no significant impact is expected in 2010 from the pressure on institutional and defence budgets.
Airbus deliveries should be around 500 aircraft for the full year 2010. Eurocopter deliveries will be slightly below the last year.
Using these exchange rates and delivery assumptions, EADS revenues should increase to more than € 44 billion.
Thanks to a higher number of expected deliveries and an upside to the group’s underlying profitability, EADS EBIT* before one-off should reach around € 1.2 billion in 2010. At Airbus, H2 EBIT* before one-off will be lower than in H1. Compared to H1, the positive impact of higher volumes and better pricing will be more than offset by higher R&D and the deterioration of hedge rates compared to the first half of the year.
Going forward, the EBIT* performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350 XWB programmes, in line with the commitments made to its customers. At €1 = $1.35, EADS maintains its EBIT* guidance of around € 1 billion despite the negative exceptional impacts from foreign exchange accrued in H1.
EADS is also improving its free cash flow guidance. Provided a sustainable year-end cash inflow of institutional and government business and subject to pre-delivery payment advances for the A400M programme, the Free Cash Flow before customer financing should be break even. Free cash-flow after customer financing should be negative due to customer financing cash-outflows of around € 600 million.
* 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