aero-notes N°31, December 2011
Over the past months, our Company has again demonstrated its potential, delivering results which were better than expected. Order intake for the nine months has been brisk and the EADS backlog has risen to a record level of over 500 billion euros. While our revenues for the period have increased slightly, our EBIT before one-off has risen strongly, up 29 percent year on year. Following improved performance we have raised guidance for the full year and reaffirmed our view that in 2012 we expect a significant
improvement in underlying profit.
Our Company is making progress. Nevertheless we remain fully focused on challenges ahead. While the risk profile on the A380 and A400M is improving, the A350 programme is entering a critical phase. We have now rescheduled the start of final assembly to Q1 2012, with Entry-into-Service planned for H1 2014. Having learned from the A380, we want to ensure that aircraft sections for the A350 are mature when delivered to the final assembly line, so we have an efficient production process.
We are also focused on adapting our institutional businesses to the government debt situation in Europe. On the basis of our existing contracts, we are ready to discuss with governments the future of defence programmes. EADS Divisions have already moved pro-actively to adjust to the new environment. In the longer term, we aim to develop our activities in growth, export markets.
We remain confident about our future despite the current financial crisis. Our net cash position after acquisitions stands at a healthy 11.4 billion euros. We can rely on our own strength to finance our organic growth and our acquisitions: recently we invested in service acquisitions, such as Vector Aerospace for Eurocopter. Our huge backlog gives us visibility for several years ahead. Despite the unsettled macro-economic environment, demand in Asia, the Middle East and Latin America in particular shows no sign of deterioration. This has allowed us to increase our guidance for Airbus order intake for 2011.
Your commitment and passion as shareholders is a further source of confidence. In recent weeks EADS Financial Communication teams have met many of you at conferences across Europe, at the Actionaria show in Paris, France and on site visits in Augsburg, Germany and Getafe, Spain. In times of market uncertainty there is no better way to appreciate the value of our activity than through direct face-to-face dialogue and seeing the product at first hand. I thank you for your support and for your enduring commitment to the company.
HANS PETER RING - Chief Financial Officer
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