EADS : EADS Reports Improved First Quarter (Q1) Results 2013

         EADS : EADS Reports Improved First Quarter (Q1) Results 2013

EADS Reports Improved First Quarter (Q1) Results 2013

  *Revenues increase 9 percent to € 12.4 billion 

  *EBIT* before one-off rises 56 percent to € 741 million

  *Net Income rises91 percent to € 241 million

  *Full Year 2013 Guidance Reaffirmed

Amsterdam, 14 May 2013  - EADS (stock exchange  symbol: EAD) achieved a  solid 
start to  2013,  with  first  quarter revenues  and  profitability  driven  by 
commercial  aircraft  deliveries.  Despite  the  overall  market  environment, 
defence revenues  remained stable  thanks to  the Group's  mix of  series  and 
development programmes and long-term contracts.

Order intake^(5)  rose sharply  to €  49.9 billion  while the  order book  had 
reached
€ 614.3 billion at the end of  the first quarter. The reported EBIT*  amounted 
to
€ 596 million with a Net  Cash position of € 9.2  billion at the end of  March 
2013.

"The quarter was an eventful one for EADS, with shareholders approving the new
governance structure while the share buyback programme is progressing and  the 
free-float has  risen  significantly,"  said  EADS CEO  Tom  Enders.  "On  the 
operational side, we had a rather good start into 2013 with improved  revenues 
and profitability. Management continues to focus on improving the bottom  line 
performance in 2013 and beyond."

During the quarter, EADS' revenues increased 9 percent to
€ 12.4  billion  (Q1 2012:  €  11.4  billion), mainly  reflecting  the  higher 
aircraft deliveries at  Airbus Commercial. Revenues  at Astrium and  Cassidian 
were broadly stable compared to a  year earlier. The Group's defence  revenues 
totalled € 2.3 billion.

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 € 741 million  (Q1 2012: € 475 million^a) for EADS  and 
to € 601 million for Airbus (Q1 2012: € 314 million^a). This was driven by the
strong underlying performance  at Airbus  Commercial. The  Group EBIT*  before 
one-off margin improved to 6.0 percent.

EADS' reported EBIT* increased to € 596 million (Q1 2012: € 333 million^a) and
included total one-off charges of € 145 million at Airbus. As anticipated,
€ 14  million of  this were  booked  for the  A380 wing  rib feet  repair.  In 
addition, a negative dollar  mismatch and balance sheet  revaluation of €  131 
million is reflected in the Q1 2013 one-off charges. 

The finance result amounted to € -251 million (Q1 2012: € -143 million).
The deviation compared to Q1 2012 mainly reflects a negative foreign  exchange 
revaluation. Net Income increased significantly to € 241 million
(Q1 2012: €  126 million^a), or  earnings per  share of €  0.29 (earnings  per 
share
Q1 2012: € 0.15^a).

Due  to   favourable  phasing   at  Airbus   Commercial,  including   IAS   38 
capitalisation on the  A350 XWB,  Self-financed Research  & Development  (R&D) 
expenses declined to € 624 million (Q1 2012: € 726 million).

Free Cash Flow before acquisitions amounted to € -3,195 million
(Q1 2012:  € -1,233  million).  This trend  reflects  the ramp-up  in  working 
capital  at  Airbus  and  Eurocopter  and  the  seasonality  of  the   Group's 
governmental business.  Capital  expenditure increased  to  € 670  million  to 
support development  programmes. EADS  finished the  quarter with  a Net  Cash 
position of € 9.2 billion (year-end 2012: € 12.3 billion).

EADS' order  intake^(5)  rose sharply  to  € 49.9  billion  (Q1 2012:  €  12.0 
billion), driven  by significant  orders for  Airbus Commercial.  Despite  the 
challenging market  environment,  the  Group continued  to  book  orders  from 
defence and public customers, although at a lower level than last year. By the
end of March 2013, the order book^(5)  had risen to € 614.3 billion  (year-end 
2012: €  566.5 billion),  supporting the  Group's future  growth. The  defence 
order book amounted to
€ 49.9 billion (year-end 2012: € 49.6 billion).

As of 31 March 2013, EADS had 142,142 employees (year-end 2012: 140,405).

Outlook

Based on the Q1 results, EADS reaffirms its guidance for the full year 2013.

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 on-going 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 
revaluation.

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: Strong Underlying Improvement At Airbus

Airbus' consolidated revenues increased to € 9,181 million (Q1 2012:
€ 8,019  million^a),  driven  by  the  ramp-up  in  deliveries  in  line  with 
projections.
The Airbus consolidated EBIT* more than doubled to € 456 million (Q1 2012:
€ 172 million^a) with order  intake rising to € 47.3  billion (Q1 2012: €  7.9 
billion^a).

Airbus Commercial's revenues rose to € 8,822 million (Q1 2012:
€ 7,609 million^a), reflecting the increase in Airbus aircraft deliveries to
144 aircraft  (Q1  2012: 131  aircraft).  Airbus Commercial's  reported  EBIT* 
amounted to € 463  million (Q1 2012:  € 135 million^a)  with the EBIT*  before 
one-off at €  608 million (Q1  2012: € 277  million^a). The Airbus  Commercial 
EBIT* before one-off reflects  the improved operational performance  including 
favourable volume and pricing on aircraft deliveries as well as favourable
R&D phasing, including IAS 38.

Revenues at Airbus Military increased sharply to € 615 million (Q1 2012:
€ 425 million), due to higher invoicing on tanker aircraft and the A400M.
The EBIT* of € 15 million (Q1 2012: € 11 million) reflected the revenue mix.

In the quarter, Airbus Commercial recorded 410 net aircraft orders
(Q1 2012: 90  net orders). Airbus  Commercial saw strong  demand for its  A320 
Family with Lion Air ordering 234 aircraft while Air Lease Corp. ordered
20 A350-900s and  five A350-1000s. Airbus  continues to make  progress on  the 
A350 XWB programme with the engine installation completed on the first  flying 
aircraft, MSN1. Preparations  for the first  flight are ongoing  with a  steep 
ramp-up ahead for the subsequent  flight test aircraft. The programme  remains 
challenging.

Airbus Military  received eight  net orders  (Q1 2012:  five net  orders)  and 
delivered three  aircraft  (Q1 2012:  four  aircraft). It  continued  to  make 
progress on  the  A400M  programme  with the  full  civil  type  certification 
received and the first  delivery to France targeted  in the second quarter  of 
2013. The initial operating  clearance will qualify  the aircraft for  initial 
configuration once agreed by the customer. Enhancement of military  capability 
will follow with subsequent upgrades as agreed by customers. 

At the end of March, Airbus' consolidated order book was valued at
€ 574.5  billion (year-end  2012: €  525.5 billion^a).  The Airbus  Commercial 
backlog amounted to € 554.2 billion (year-end 2012: € 505.3 billion^a),  which 
comprises 4,948 Airbus  aircraft excluding  ATR orders  (year-end 2012:  4,682 
units). Airbus Military's order book was worth € 21.1 billion (year-end  2012: 
€ 21.1 billion).

Revenues at Eurocopter fell by 13 percent to € 1,038 million (Q1 2012:
€ 1,199 million) with deliveries of 58 helicopters (Q1 2012: 72 helicopters).
The Division's EBIT* declined by 69 percent to € 20 million (Q1 2012:
€ 64 million^a). Eurocopter has faced some revenue and EBIT* pressure  arising 
from the technical  problems with  the Super Puma  fleet. Flight  restrictions 
have impacted both the delivery schedule and the service revenues generated by
helicopter operations. A recovery is expected later in 2013 as Eurocopter  has 
now identified the root cause for the technical issues and validation with the
regulators is ongoing.

Sales and EBIT* one year earlier, in Q1 2012, benefited from a strong delivery
performance, in particular for the Super Puma.

As anticipated,  Eurocopter  signed a  Memorandum  of Understanding  with  the 
German government reducing the overall  number of helicopters to be  delivered 
but with some  rebalancing between types  on the  NH90 from TTH  to naval  NFH 
versions. Other discussions with key customers are ongoing.

In the first three months of 2013, Eurocopter booked 51 net orders
(Q1 2012: 93 net orders). At the end of March 2013, the Division's order  book 
was worth € 12.7 billion (year-end 2012: € 12.9 billion), comprising
1,063 helicopters (year-end 2012: 1,070 helicopters).

Astrium's revenues in the first quarter rose 3 percent to € 1,369 million
(Q1 2012: € 1,325  million), with increases in  Ariane 5 production sales  and 
telecommunication satellites partially offset by a reduction in services.
EBIT* was flat  at €  66 million (Q1  2012: €  65 million) due  to a  slightly 
unfavourable sales mix.

Order intake in  the first  quarter stood  at € 817  million (Q1  2012: €  1.2 
billion). Aside  from contracts  from  the European  Space Agency  related  to 
Ariane 5 ME  (Midlife Evolution) and  Ariane 6, Astrium  received a  long-term 
contract to  deliver France's  first military  ultra-fast broadband  satellite 
communications network.

Astrium completed the 54^th consecutive  successful Ariane 5 launch while  the 
SPOT 6 satellite and Pléiades 1B satellites received in-orbit qualification.
In April, the  Astrium Services-operated Skynet  5D military satellite  became 
fully operational. At the  end of March  2013, the order  book of Astrium  was 
worth
€ 12.1 billion (year-end 2012: € 12.7 billion).

Cassidian's revenues increased slightly to € 941 million (Q1 2012:
€ 925 million) with  the EBIT* rising to  € 7 million from  € 5 million^a.  As 
expected, the operational performance  was in line with  the first quarter  of 
2012. The new  organisation of  Cassidian is  now fully  operational with  the 
implementation of the  restructuring plan underway.  Border security  projects 
remain challenging in commercial and programme delivery.

Despite flat European defence budgets, Cassidian achieved a book-to-bill ratio
of more than 1, including export  orders booked for Eurofighter, missiles  and 
the sensor business. Orders in Q1 2012 were exceptionally high and included  a 
Eurofighter sustainment contract and Mica missile contract in India. Net order
intake fell to € 1.1  billion (Q1 2012: € 1.8  billion). At the end of  March, 
Cassidian's order  book  was worth  €  15.5  billion (year-end  2012:  €  15.6 
billion).

Confirming its progress in the Unmanned Aerial Systems (UAS) field,  Cassidian 
achieved the successful maiden  flight of the Atlante  UAS and the first  full 
system test flight of the Euro Hawk UAS during the quarter.

*     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.

a.Certain first quarter 2012 and year-end 2012 figures have been restated to
    reflect the  change  to pension  accounting  under IAS  19  while  Airbus' 
    figures also  reflect  the inclusion  of  ATR and  Sogerma  within  Airbus 
    Commercial. ATR and Sogerma were formerly included in Other Businesses.



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.

EADS Investor Relations contacts:

Philippe BALDUCCHI tel. +33 1 42 24 28 00philippe.balducchi@eads.net
Julie KITCHER tel. +33 1 42 24 26 36julie.kitcher@eads.net
Christof BRASS  tel. +33 5 61 93 33 50christof.brass@eads.net
www.eads.com

Note to editors: Live-Transmission of the EADS Analyst Conference Call on the
Internet

You can listen to the Q1Analyst Conference  Call today at 10:30 a.m. CET  with 
Chief Financial  Officer Harald  Wilhelm on  the EADS  website:  www.eads.com. 
Please click  on the  front  page banner.  A recording  of  the call  will  be 
available in due course.

EADS - First Quarter (Q1) Results 2013
(Amounts in euro) 

EADS Group                             Q1 2013  Q1 2012  Change
Revenues, in millions                   12,387   11,404    +9%
thereof defence, in millions            2,315    2,293     +1%
EBITDA ^(1), in millions                1,029    766^a    +34%
EBIT ^(2), in millions                   596     333^a    +79%
Research & Development expenses,         624      726     -14%
in millions
Net Income ^(3), in millions             241     126^a    +91%
Earnings Per Share (EPS) ^(3)            0.29    0.15^a  +0.14 €
Free Cash Flow (FCF), in millions      - 3,195 - 1,238    -
Free Cash Flow                         - 3,195 - 1,233    -
before Acquisitions, in millions
Free Cash Flow                         - 3,122 - 1,303    -
before Customer Financing, in millions
Order Intake ^(5), in millions          49,904   12,004   +316%
                                                         
                                                         
EADS Group                              31 Mar   31 Dec  Change
                                         2013     2012
Order Book ^(5), in millions           614,291  566,493    +8%
thereof defence, in millions            49,902   49,570   +1%
Net Cash position, in millions          9,213    12,292   -25%
Employees                              142,142  140,405    +1%

For footnotes please refer to page 8.

by Division                          Revenues               EBIT ^ (2)
(Amounts in millions of Euro)   Q1      Q1    Change    Q1       Q1     Change
                               2013    2012            2013     2012
Airbus Division ^(6)          9,181  8,019^a   +14%    456      172^a   +165%
Airbus Commercial             8,822  7,609^a   +16%    463      135^a   +243%
Airbus Military                615     425     +45%     15       11      +36%
Eurocopter                    1,038   1,199   -13%     20      64^a    -69%
Astrium                       1,369   1,325    +3%      66       65      +2%
Cassidian                      941     925     +2%      7        5^a     +40%
Headquarters /                - 220 - 261^a   -       51      29^a      -
Consolidation
Other Businesses                78    197^a   -60%    - 4    - 2^a     -
Total                         12,387  11,404   +9%     596      333^a    +79%
                                                                       
by Division                     Order Intake ^(5)         Order Book ^(5)
(Amounts in millions of Euro)   Q1      Q1    Change  31 Mar   31 Dec   Change
                               2013    2012            2013     2012
Airbus Division ^(6)          47,337 7,938^a  +496%  574,527  525,482^a  +9%
Airbus Commercial             46,826 7,591^a  +517%  554,221  505,333^a  +10%
Airbus Military                540     372     +45%   21,130   21,139    -0%
Eurocopter                     804    1,248   -36%   12,708   12,942    -2%
Astrium                        817    1,163   -30%   12,061   12,734    -5%
Cassidian                     1,066   1,806   -41%   15,532   15,611    -1%
Headquarters /                - 195 - 202^a   -    - 1,043 - 770^a    -
Consolidation
Other Businesses                75     51^a    +47%    506      494^a    +2%
Total                         49,904  12,004  +316%  614,291   566,493   +8%

For footnotes please refer to page 8.

Footnotes:

1)      Earnings before  interest, taxes,  depreciation, amortisation  and 
exceptionals.

2)     Earnings  before interest and  taxes, pre  goodwill impairment  and 
exceptionals.

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 
one-off.

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.

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 
such statements.

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 3  April 
2013. For more information, please refer to www.eads.com.

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