EADS : Continued Growth: EADS Reports Strong Full Year Results 2012
Continued Growth: EADS Reports Strong Full Year Results 2012
*Revenues increase 15 percent to € 56.5 billion
*EBIT* before one-off up 68 percent to € 3.0 billion
*Net Income rises 19 percent to € 1.2 billion
*Free Cash Flow before acquisitions € 1.4 billion
*Proposed dividend increases to € 0.60 a share
*EADS targets € 3.5 billion EBIT* before one-off in 2013
Amsterdam, 27 February 2013 - EADS (stock exchange symbol: EAD) achieved
strong revenue and underlying profit growth for the full year 2012. Despite a
difficult macro-economic environment, EADS saw continued momentum in its
commercial activities while defence revenues were broadly stable.
The order intake^(5) totalled € 102.5 billion in 2012 while EADS' order
book^(5) increased in value to € 566.5 billion at the end of the year.
Revenues amounted to € 56.5 billion. The EBIT* before one-off of around € 3.0
billion reflected the strong operational performance at Airbus Commercial with
positive contributions from Eurocopter and Astrium. The reported EBIT*
increased to € 2.2 billion. The
Net Cash position at the end of the year was € 12.3 billion.
"EADS achieved double-digit revenue and profit growth during 2012 while the
order backlog increased further," said EADS CEO Tom Enders. "A strong focus on
deliveries helped to significantly improve cash generation during the fourth
quarter. Going-forward, the focus on bottom line growth remains our priority
number one as a management team. And there's still some way to go to meet our
profitability targets. If anything, the new governance, the new shareholder
structure and the new Board as of end March will further energize the company
and its employees on their successful international growth path."
For the full year 2012, EADS' revenues increased by 15 percent to
€ 56.5 billion (FY 2011: € 49.1 billion). This strong performance was driven
mainly by higher volume and more favourable U.S. dollar rates at Airbus
Commercial as well as solid increases at Eurocopter and Astrium. Revenues at
Eurocopter and Astrium were boosted by the services businesses, including
Vector Aerospace and Vizada. The companies acquired in 2011 contributed around
€ 1.5 billion to the 2012 revenues. Despite the overall defence environment,
defence revenues were flat compared to 2011.
Physical deliveries remained strong with a record 588 aircraft for Airbus
Commercial, 29 aircraft for Airbus Military, 475 helicopters at Eurocopter and
the 53^rd consecutive successful Ariane 5 launch.
EBIT* before one-off (adjusted EBIT*) - 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 sharply to € 3.0 billion (FY 2011: € 1.8 billion)
for EADS and to around € 1.8 billion for Airbus (FY 2011: around € 0.5
The Group performance was driven by the strong underlying performance at
Airbus Commercial while Eurocopter and Astrium also delivered absolute
increases to the EBIT* before one-off.
EADS' reported EBIT* increased to € 2,186 million (FY 2011: € 1,696 million)
with one-off charges totalling € 820 million booked during the year.
Of these total one-off charges, € 522 million were booked at Airbus during
2012, including the anticipated € 251 million on the A380 related to the wing
rib feet repair. The A350 XWB charge of € 124 million to reflect the latest
programme update is unchanged since H1 2012. Good progress is being made on
A350 XWB programme but it remains challenging and there is no room left in the
schedule. Also included are the € 76 million charges related to the Hawker
Beechcraft Programme closure booked in the third quarter and a € 71 million
charge for the foreign exchange impact on pre-delivery payments mismatch and
balance sheet revaluation. At Eurocopter, the on-going renegotiation of
certain contracts for governmental customers resulted in a € 100 million
charge in the fourth quarter. At Cassidian, a total of € 198 million of
charges were booked in the final quarter to reflect restructuring costs in
line with the business transformation
(€ 98 million) and a charge related to portfolio de-risking (€ 100 million),
in particular for the secure systems and solutions business.
Net Income increased by 19 percent to € 1,228 million (FY 2011:
€ 1,033 million), or earnings per share of € 1.50 (earnings per share FY 2011:
€ 1.27). The Net Income* before one-off^(4) increased to € 1,838 million (FY
€ 1,132 million). These increases reflect the improvement in the underlying
The finance result amounted to € -453 million (FY 2011: € -220 million).
The 2012 interest result of € -285 million (FY 2011: € 13 million)
deteriorated partly due to lower interest income as a function of the high
quality of investments.
In addition, the 2011 interest result included a positive one-time release of
€ 120 million due to the termination of the A340 programme. The other
financial result amounts to € -168 million (FY 2011: € -233 million),
reflecting an improved impact from the foreign exchange revaluation compared
to 2011. This line also includes the unwinding of discounted provisions.
Based on Earnings per Share (EPS) of € 1.50, the EADS Board of Directors
proposes payment on 5 June 2013 of a dividend of € 0.60 per share to the
Annual General Meeting of shareholders (FY 2011: € 0.45 per share). The record
date should be 4 June 2013.
"This proposed dividend increase reflects the progress the Group made during
2012," said Harald Wilhelm, CFO of EADS. "We are focused on delivering value
to our shareholders."
Self-financed Research & Development (R&D) expenses remained broadly stable at
€ 3,142 million (FY 2011: € 3,152 million), due to IAS38 capitalisation of
€ 366 million on the A350 XWB. The focus continues on major development
programmes across the portfolio, in particular the A350 XWB and at Eurocopter.
Free Cash Flow before acquisitions of € 1,449 million exceeded expectations.
The traditional end of year seasonal payment pattern has been very strong. It
resulted in a strong positive swing in fourth quarter working capital thanks
to the high delivery performance and stream of advances and receipts from
commercial and government customers. Gross cash flow from operations reflects
the strong underlying performance during the year.
The level of capital expenditure was € 3.3 billion, reflecting the ramp up in
development and series programmes as the company builds capacity for future
volume driven top and bottom line growth. It also includes the capitalised R&D
under IAS38. Despite the record level of commercial aircraft deliveries, EADS'
customer financing gross exposure was broadly stable compared to the 2011
EADS' Net Cash position increased to a solid € 12.3 billion (year-end 2011:
€ 11.7 billion) after a cash contribution of € 856 million to pension assets
and the dividend payment of about € 370 million.
EADS' order intake^(5) amounted to € 102.5 billion (FY 2011: € 131.0 billion)
and reflected continuing commercial momentum across the EADS portfolio. Airbus
Military, Eurocopter, Astrium and Cassidian all recorded year-on-year
increases in order intake while Airbus Commercial exceeded its order target,
booking 914 gross orders for 2012. At the end of December 2012, the Group's
order book^(5) had increased by 5 percent to € 566.5 billion (year-end 2011: €
541.0 billion). The defence order book decreased to € 49.6 billion (year-end
2011: € 52.8 billion).
At the end of December 2012, EADS had a total of 140,405 employees
(year-end 2011: 133,115).
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 disruption due to the current sovereign debt crisis.
In 2013, gross commercial aircraft orders should be above the number of
deliveries, in the range of 700 aircraft. Airbus deliveries should continue to
grow to between 600 and 610 commercial aircraft.
Due to lower A380 deliveries and assuming an exchange rate of € 1 = $ 1.35,
EADS revenues should see moderate growth in 2013.
By stretching the 2012 underlying margin improvement, in 2013 EADS targets an
EBIT* before one-off of € 3.5 billion and an EPS* before one-off of around €
2.50 (FY 2012: € 2.24), prior to the proposed share buyback.
Excluding the known wing rib feet A380 impact in 2013 of around € 85 million
based on 25 deliveries, going forward, from today's point-of-view, the
"one-offs" should be limited to potential charges on the A350 XWB programme
and foreign exchange effects linked to PDP mismatch and balance sheet
The A350 XWB programme remains challenging. Any schedule change could lead to
an increasingly higher impact on provisions.
EADS aims to be Free Cash Flow breakeven after customer financing and before
acquisitions in 2013.
EADS Divisions: Record Commercial Deliveries At Airbus; Order Intake Rises At
Airbus Military, Eurocopter, Astrium & Cassidian
Airbus' consolidated revenues increased by 17 percent to € 38,592 million
(FY 2011: € 33,103 million), reflecting strong commercial aircraft deliveries.
The Airbus consolidated EBIT* more than doubled to € 1,230 million (FY 2011:
€ 584 million).
Airbus Commercial revenues amounted to € 36,943 million (FY 2011:
€ 31,159 million), driven by record commercial deliveries of 588 (FY 2011:
534), including 30 A380s. A total of 585 deliveries were booked with revenue
recognition with the remaining three placed on operating lease. Revenues also
benefitted from favourable U.S. dollar rates.
Airbus Commercial's reported EBIT* amounted to € 1,125 million (FY 2011:
€ 543 million). The Airbus Commercial EBIT* before one-off of € 1,647 million
(FY 2011: € 485 million) benefited from an improved operational performance
including favourable volume and pricing, net of escalation. It also reflected
the hedge rate improvement. The Division's self-financed R&D expenses fell
slightly to € 2,442 million. Despite stable deliveries, revenues at Airbus
Military decreased by 15 percent to € 2,131 million (FY 2011: € 2,504 million)
driven by lower A400M and tanker revenues. Airbus Military's EBIT* improved
significantly to € 93 million (FY 2011: € 49 million) due to a favourable
delivery mix with margin improvements from technically maturing programmes.
During 2012, Airbus Commercial registered 914 gross orders (FY 2011:
1,608 gross orders). Net orders totalled 833 (FY 2011: 1,419). These net
orders comprised 739 A320 Family aircraft (ceo and neo), 85 A330/A350XWBs and
The A350 XWB development remains on track, based on the revised schedule, with
the final assembly line fully operational. The structural assembly of the
first flyable plane, 'MSN1', was completed and 'electrical power on'
accomplished. Another milestone was achieved in February 2013 with the award
of the European Aviation Safety Agency's Engine Type Certification for the
Trent XWB turbofan.
Regarding the A380, the wing rib issue has been resolved with repairs on-going
on deployed aircraft and design modifications embodied into the new production
standard. The avenue for breakeven in 2015 is set at 30 deliveries.
In response to the continuing strong demand for Airbus' series programmes,
Airbus achieved the steady production ramp-up of the A320 and A330 Families to
42 and 9.5 per month respectively. At the end of the year, AirAsia became the
first operator of a fuel-saving 'Sharklet'-equipped A320.
Airbus Military achieved 32 aircraft orders (FY 2011: 5 orders) and delivered
29 aircraft (FY 2011: 29 deliveries), comprising 20 light and medium military
transporters, five A330 MRTTs and four P-3 conversions. With 300 hours of
Function and Reliability testing completed, civil and military certification
for the A400M is expected in Q1 2013 with the first delivery due in Q2 2013
and four deliveries expected this year. Full military capabilities will be
achieved over time and challenges remain until then. Airbus Military was
selected by India as the preferred bidder to supply A330 MRTT aircraft.
At the end of 2012, Airbus' consolidated order book was valued at € 523.4
billion (year-end 2011: € 495.5 billion). The Airbus Commercial backlog
€ 503.2 billion (year-end 2011: € 475.5 billion), which comprises 4,682 units
representing an industry record (year-end 2011: 4,437 aircraft). At the end of
the year, Airbus Military's order book stood at € 21.1 billion (year-end 2011:
€ 21.3 billion).
Revenues at Eurocopter increased 16 percent to a record € 6,264 million
(FY 2011: € 5,415 million), driven mainly by higher repair and overhaul
support activities and the full year inclusion of the Vector Aerospace
business consolidation. Higher NH90 and Super Puma revenues also contributed
to the overall increase. Total deliveries declined to 475 helicopters (FY
503 helicopters), in particular for the EC135 and Ecureuil models.
The Division's EBIT* increased by 20 percent to € 311 million (FY 2011:
€ 259 million). The 2012 EBIT* includes the € 100 million charge booked in the
fourth quarter to reflect the latest status of the on-going renegotiations for
certain governmental programmes. EBIT* before one-off increased around 10
percent year-on-year, reflecting the revenue mix and the increase in R&D
expenses as expected.
Eurocopter's order intake for 2012 rose 15 percent to € 5,392 million (FY
€ 4,679 million) with the number of net bookings rising for the third
consecutive year to 469 (FY 2011: 457). Orders of the Ecureuil/Fennec/EC130
and EC135/ EC145 families were particularly strong.
Eurocopter continues to work in close collaboration with the investigating
authorities on further identifying and explaining the root cause of the Super
Puma incidents. The root cause of the recent Ecureuil incidents has been
identified and a programme is in place to implement a retrofit approved by
At the end of 2012, Eurocopter's order book was worth € 12.9 billion (year-end
2011: € 13.8 billion) comprising 1,070 helicopters (year-end 2011: 1,076
Astrium revenues in 2012 increased to € 5,817 million (FY 2011: € 4,964
million) driven mainly by growth in services including the Vizada integration
and strong programme execution. EBIT* increased by 17 percent to € 312 million
€ 267 million). Astrium is seeing efficiency and productivity gains coming
through the operational performance as a result of the AGILE transformation
programme. However, higher investment in R&D and globalisation efforts as well
as some Vizada integration costs weighed on the operating margin in 2012.
The Division achieved an order intake of € 3.8 billion in 2012 (FY 2011:
€ 3.5 billion), despite continued tough competition in the marketplace.
Seven Ariane 5 launches were conducted during 2012, taking the number of
successful consecutive launches to 53. Nine Astrium-built satellites were
delivered during the year. Fourth quarter satellite launches included U.K.
military satellite Skynet 5D and earth observation satellite Pléiades 1B,
further expanding the fleet operated by Astrium Services.
In November, the European Space Agency's Ministerial Council broadly confirmed
European space budgets related to key programmes of Astrium. This resulted in
initial contracts worth € 108 million received in January 2013 to secure the
development of Ariane 6 and Ariane 5 ME.
At the end of 2012, Astrium's order book amounted to € 12.7 billion
(year-end 2011: € 14.7 billion).
Cassidian revenues in 2012 were broadly stable as expected at € 5,740 million
(FY 2011: € 5,803 million). EBIT* in 2012 fell to € 142 million (FY 2011:
€ 331 million) reflecting the € 198 million of one-off charges booked in the
fourth quarter. On an underlying basis, the EBIT* before one-off was lower as
expected due to investments in globalisation and transformation despite lower
Cassidian's order intake rose significantly to € 5.0 billion in 2012 (FY 2011:
€ 4.2 billion) despite the challenging market environment. This was driven
mainly by the Eurofighter and missile export business. In December, Oman
signed a contract for the purchase of 12 Eurofighter Typhoon aircraft which is
yet to be included in the order book.
At the end of December 2012, the order book of Cassidian had risen slightly to
€ 15.6 billion (year-end 2011: € 15.5 billion).
Headquarters and Other Businesses (not belonging to any Division)
Revenues of Other Businesses increased 22 percent to € 1,524 million
(FY 2011: € 1,252 million), driven by volume increases at EADS North America
and higher ATR deliveries. The EBIT* of Other Businesses decreased to
€ 49 million (FY 2011: € 59 million) with the EBIT* before one off stable with
the 2011 level due to a less favourable revenue mix.
After an exceptional 2011, ATR in 2012 secured 61 firm orders (FY 2011:
119 orders) with its order backlog reaching 221 aircraft at the end of the
year, equivalent to nearly three years of production. ATR achieved a record
annual delivery level of 64 aircraft, reflecting a year-on-year increase of 19
(FY 2011: 54 aircraft).
In late 2012, the U.S. Army awarded EADS North America a $ 181.8 million
contract option to deliver 34 additional UH-72A Lakota light utility
helicopters, raising the total number of orders to 312. The total number of
Lakota deliveries to the U.S. Armed Forces reached 250 in December 2012.
At the end of December 2012, the order book of Other Businesses had decreased
slightly to € 2.9 billion (year-end 2011: € 3.0 billion).
* EADS uses EBIT pre-goodwill impairment and exceptionals as a key
indicator of its economic performance. The term "exceptionals" refers to such
items as depreciation expenses of fair value adjustments relating to the EADS
merger, the Airbus Combination and the formation of MBDA, as well as
impairment charges thereon.
EADS is a global leader in aerospace, defence and related services. In 2012,
the Group - comprising Airbus, Astrium, Cassidian and Eurocopter - generated
revenues of € 56.5 billion and employed a workforce of over 140,000.
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EADS - Full Year (FY) Results 2012
(Amounts in euro)
EADS Group FY 2012 FY 2011 Change
Revenues, in millions 56,480 49,128 +15%
thereof defence, in millions 11,605 11,561 0%
EBITDA ^(1), in millions 4,184 3,520 +19%
EBIT ^(2), in millions 2,186 1,696 +29%
Research & Development expenses, 3,142 3,152 0%
Net Income^(3), in millions 1,228 1,033 +19%
Earnings Per Share (EPS) ^(3) 1.50 1.27 0.23 €
Free Cash Flow (FCF), in millions 1,248 958 +30%
Free Cash Flow 1,449 2,493 -42%
before Acquisitions, in millions
Free Cash Flow 1,394 823 +69%
before Customer Financing, in millions
Dividend per share 0.60^(7) 0.45 +0.15 €
Order Intake ^(5), in millions 102,471 131,027 -22%
EADS Group 31 Dec 31 Dec Change
Order Book ^(5), in millions 566,493 540,978 +5%
thereof defence, in millions 49,570 52,775 -6%
Net Cash position, in millions 12,292 11,681 +5%
Employees 140,405 133,115 +5%
For footnotes please refer to page 12.
by Division Revenues EBIT ^ (2)
(Amounts in millions FY FY Change FY FY Change
of Euro) 2012 2011 2012 2011
Airbus Division ^(6) 38,592 33,103 +17% 1,230 584 +111%
Airbus Commercial 36,943 31,159 +19% 1,125 543 +107%
Airbus Military 2,131 2,504 -15% 93 49 +90%
Eurocopter 6,264 5,415 +16% 311 259 +20%
Astrium 5,817 4,964 +17% 312 267 +17%
Cassidian 5,740 5,803 -1% 142 331 -57%
Headquarters / -1,457 -1,409 - 142 196 -
Other Businesses 1,524 1,252 +22% 49 59 -17%
Total 56,480 49,128 +15% 2,186 1,696 +29%
by Division Order Intake ^(5) Order Book ^(5)
(Amounts in millions FY FY Change 31 Dec 31 Dec Change
of Euro) 2012 2011 2012 2011
Airbus Division ^(6) 88,142 117,874 -25% 523,410 495,513 +6%
Airbus Commercial 86,478 117,301 -26% 503,218 475,477 +6%
Airbus Military 1,901 935 +103% 21,139 21,315 -1%
Eurocopter 5,392 4,679 +15% 12,942 13,814 -6%
Astrium 3,761 3,514 +7% 12,734 14,666 -13%
Cassidian 5,040 4,168 +21% 15,611 15,469 +1%
Headquarters / -1,413 -1,233 - -1,112 -1,467 -
Other Businesses 1,549 2,025 -24% 2,908 2,983 -3%
Total 102,471 131,027 -22% 566,493 540,978 +5%
For footnotes please refer to page 12.
EADS - Fourth Quarter Results (Q4) 2012
(Amounts in euro)
EADS Group Q4 2012 Q4 2011 Change
Revenues, in millions 19,222 16,441 +17%
EBIT ^(2), in millions 571 811 -30%
Net Income^(3), in millions 325 612 -47%
Earnings Per Share (EPS) ^ (3) 0.40 0.75 -0.35 €
by Division Revenues EBIT ^(2)
(Amounts in millions of Euro) Q4 Q4 Change Q4 Q4 Change
2012 2011 2012 2011
Airbus Division ^(6) 12,971 10,692 +21% 393 289 +36%
Airbus Commercial 12,218 10,039 +22% 309 237 +30%
Airbus Military 937 757 +24% 85 44 +93%
Eurocopter 2,148 1,957 +10% 34 102 -67%
Astrium 1,883 1,524 +24% 121 102 +19%
Cassidian 2,256 2,384 -5% -14 161 -109%
Headquarters / -493 -535 - 3 118 -
Other Businesses 457 419 +9% 34 39 -13%
Total 19,222 16,441 +17% 571 811 -30%
For footnotes please refer to page 12.
Q4 2012 revenues increased 17 percent, driven mainly by the strong delivery
performance at Airbus and Astrium and higher military revenues at Eurocopter.
Q4 2012 EBIT* decreased by 30 percent compared to one year ago. The better
operational performance at Airbus was more than offset by the charges booked
by Eurocopter and Cassidian in the fourth quarter.
1) Earnings before interest, taxes, depreciation, amortisation and
2) Earnings before interest and taxes, pre goodwill impairment and
3) EADS continues to use the term Net Income. It is identical with
Profit for the period attributable to equity owners of the parent as defined
by IFRS Rules.
4) Net Income before one-off is the Net Income stripped of the EBIT*
one-offs. It excludes other financial result (except the unwinding of discount
on provisions) and all tax effects on the mentioned items. Net Income* before
one-off is the Net Income before one-off pre-goodwill and exceptionals net of
tax. Accordingly, EPS* before one-off is EPS based on Net Income* before
5) Contributions from commercial aircraft activities to EADS Order
Intake and Order Book based on list prices.
6) The reportable Segments Airbus Commercial and Airbus Military form
the Airbus Division. Eliminations are treated at the Division level.
7) To be proposed to the Annual General Meeting.
Safe Harbour Statement:
Certain statements contained in this press release are not historical facts
but rather are statements of future expectations and other forward-looking
statements that are based on management's beliefs. These statements reflect
the EADS' views and assumptions as of the date of the statements and involve
known and unknown risk and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in
When used in this press release, words such as "anticipate", "believe",
"estimate", "expect", "may", "intend", "plan to" and "project" are intended to
identify forward-looking statements.
This forward looking information is based upon a number of assumptions
including without limitation: assumption regarding demand, current and future
markets for EADS' products and services, internal performance, customer
financing, customer, supplier and subcontractor performance or contracts
negotiations, favourable outcomes of certain pending sales campaigns.
Forward looking statements are subject to uncertainty and actual future
results and trends may differ materially depending on variety of factors
including without limitation: general economic and labour conditions,
including in particular economic conditions in Europe, North America and Asia,
legal, financial and governmental risk related to international transactions,
the cyclical nature of some of EADS' businesses, volatility of the market for
certain products and services, product performance risks, collective
bargaining labour disputes, factors that result in significant and prolonged
disruption to air travel worldwide, the outcome of political and legal
processes, including uncertainty regarding government funding of certain
programs, consolidation among competitors in the aerospace industry, the cost
of developing, and the commercial success of new products, exchange rate and
interest rate spread fluctuations between the euro and the U.S. dollar and
other currencies, legal proceeding and other economic, political and
technological risk and uncertainties. Additional information regarding these
factors is contained in the Company's "registration document" dated 12 April
2012. For more information, please refer to www.eads.com.
EADS résultats annuels 2012
EADS FY 2012 Press Release
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