Ad-hoc release, 9 Mai 2005. EADS – First Quarter Results 2005
EADS: Strong first quarter performance confirms growth trend
- EBIT*: Euro 657 million more than tripled
- Revenues: Euro 7 billion up 16 percent
- Net Income: Euro 328 million up from Euro 49 million
- Net cash position: Euro 4.3 billion up 7 percent
Amsterdam, 09 May 2005
EADS (stock exchange symbol: EAD), a global leader in aerospace, defence and related services, strongly improved its financial performance in the first quarter of 2005. From January to March 2005, the company reached an EBIT* (pre-goodwill and exceptionals) of Euro 657 million, more than triple the figure for the same period of 2004 (Euro 198 million). Revenues grew by 16 percent to Euro 7 billion (Q1 2004: Euro 6 billion) driven by strong performance across all divisions. Defence revenues also grew by 16 percent.
EBIT* increase in all Divisions
EBIT* improved in all Divisions, in particular at Airbus, primarily due to the increase of aircraft deliveries from 67 in the first quarter of 2004 to 87 in the same period of 2005. The Airbus EBIT* benefited from favourable hedging rates in line with those in the first quarter of 2004.
As usual, revenues and earnings of the institutional, defence and security businesses of the Space, Aeronautics, Defence and Security Systems as well as the Military Transport Aircraft Divisions are expected to be significantly stronger towards the end of the year, while the Airbus EBIT* in the following quarters will be impacted by less favourable hedging rates.
The turnaround at EADS Space was confirmed by the division’s performance in the first quarter. EADS Space’s profitability is expected to be significantly higher than in 2004.
Net Cash position increased – R&D investment to remain at high level Cash was mostly generated by stronger operating results. Free Cash Flow before customer financing has surged to Euro 704 million (Q1 2004: Euro 419 million). This is not only the result of increasing aircraft deliveries, it also reflects the conservative approach to management of cash at EADS. The Net Cash position increased from Euro 4.1 billion at year-end 2004 to Euro 4.3 billion as of 31 March 2005.
The self-financed Research & Development (R&D) charge has decreased from Euro 535 million in the first quarter 2004 to Euro 422 million in the first quarter of 2005. This is in large part due to the entry to production of the A380 passenger version and the increase of R&D capitalization for the A380. R&D expenses are expected to increase in the following quarters when the A380 freighter version development ramps up.
Net Cash position increased – R&D investment to remain at high level
Cash was mostly generated by stronger operating results. Free Cash Flow before customer financing has surged to Euro 704 million (Q1 2004: Euro 419 million). This is not only the result of increasing aircraft deliveries, it also reflects the conservative approach to management of cash at EADS. The Net Cash position increased from Euro 4.1 billion at year-end 2004 to Euro 4.3 billion as of 31 March 2005.
The self-financed Research & Development (R&D) charge has decreased from Euro 535 million in the first quarter 2004 to Euro 422 million in the first quarter of 2005. This is in large part due to the entry to production of the A380 passenger version and the increase of R&D capitalization for the A380. R&D expenses are expected to increase in the following quarters when the A380 freighter version development ramps up.
Net Income of Euro 328 million
EADS recorded a Net Income of Euro 328 million (Q1 2004: Euro 49 million), or Euro 0.41 per share, for the first quarter of 2005 (Q1 2004: Euro 0.06). This increase follows the surge in EBIT*.
Revenue growth at 16 percent – Order Intake more than doubled
EADS revenues rose 16 percent to Euro 7.0 billion (Q1 2004: Euro 6.0 billion) during the first three months of 2005.
EADS’ order intake in the first three months amounted to nearly Euro 9 billion (Q1 2004: Euro 3.4 billion). The strong increase is mainly due to stronger Airbus and Space orders. Airbus booked 123 gross orders representing a 66 percent market share. Space orders during the first quarter 2005 included UK Ministry of Defence orders for Paradigm following key milestones achievements at Paradigm.
EADS order book amounted to a total of Euro 190.4 billion at the end of March, an unprecedented level in EADS history, including Euro 49.7 billion for defence businesses. It remains the strongest in the global aerospace and defence industry.
Outlook
EADS confirms the outlook for 2005 that was published on 9 March 2005.
EBIT
* EADS uses EBIT pre-goodwill amortization 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.
Contact
| Rainer Ohler | EADS |
Tel.: +49 89 60 73 42 35 |
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