Airbus Group Reports First Quarter (Q1) 2016 Results
(Thomson Reuters ONE) -
Airbus Group Reports First Quarter (Q1) 2016 Results
* 2016 guidance maintained, commercial aircraft order backlog robust
* Revenues ? 12 billion; EBIT* before one-off ? 501 million; Earnings per
share ? 0.51
* Q1 financials driven by back-loaded delivery schedule
* Continued focus on programme ramp-up and NEO transition
Amsterdam, 28 April 2016 - Airbus Group SE (stock exchange symbol: AIR) reported
first quarter 2016 results and maintained its guidance for the full year.
"2016 turns out to be the challenging year we anticipated. Overall, we expect a
stable financial performance but deliveries, cash and earnings will be heavily
loaded towards the end of the year. And that already shows in our first quarter
performance," said Tom Enders, Airbus Group Chief Executive Officer.
"Operationally, we continue to focus on the production ramp-ups of our Airbus
A350 and A320 programmes and on the change-over to the new engine versions of
the A320 and A330. On the military side, we are now facing a serious challenge
for production and customer deliveries of the A400M due to new, unexpected
issues on the engine propeller gearbox. It's very frustrating but we'll have to
work through this with our engine partners. So, in a nutshell, despite these
challenges we maintain our 2016 guidance and also our earnings and cash growth
story for the coming years based on our strong commercial order backlog and the
robust, well-resourced production ramp-ups underway."
Group order intake((1)) in the quarter was ? 7.2 billion (Q1 2015: ? 21
billion), with the order book((1) )value totalling ? 957 billion as of 31 March
2016 (year-end 2015: ? 1,006 billion).
Airbus received 10 net commercial aircraft orders (Q1 2015: 101 net orders) with
gross orders of
32 aircraft including 14 A330neos and two A380s for Emirates Airline. Fourteen
of the
22 cancellations in the quarter were CEO (current engine option) to NEO (new
engine option) conversions for the A320 and A330. Airbus Helicopters received
51 net orders (Q1 2015: 86 units), including 38 Ecureuil light rotorcraft. Order
intake by value rose five percent at Airbus Defence and Space, driven mainly by
earth observation satellites and defence contracts.
Group revenues were stable at ? 12.2 billion (Q1 2015: ? 12.1 billion). Despite
lower deliveries of 125 aircraft (Q1 2015: 134 aircraft), revenues were stable
at Commercial Aircraft supported by the strengthening average U.S. dollar rate.
Helicopters' revenues declined 10 percent, reflecting lower deliveries of 56
units (Q1 2015: 62 units) and an unfavourable mix.
Group EBIT* before one-off((3)) - 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
- was ? 501 million
(Q1 2015: ? 651 million). Commercial Aircraft's EBIT* before one-off totalled ?
407 million
(Q1 2015: ? 569 million), driven mainly by the back-loaded profile of deliveries
and A330 rate adjustment but partly compensated by lower research and
development (R&D) costs. Helicopters' EBIT* before one-off declined to ? 33
million (Q1 2015: ? 52 million), mainly reflecting lower volumes and an
unfavourable mix. Defence and Space's EBIT* before one-off increased 21 percent
to ? 109 million (Q1 2015: ? 90 million), supported by programme execution,
portfolio focusing and efficiency measures.
Group self-financed R&D expenses declined to ? 547 million (Q1 2015: ? 701
million).
The A350 XWB ramp-up is progressing with the focus on bottlenecks in the supply
chain, reducing outstanding work and controlling recurring costs. This is
increasingly challenging.
The target for a monthly production rate of 10 A350s by the end of 2018 remains
unchanged. Five A320neos were delivered in the first quarter to two customers.
Pratt & Whitney is committed to supplying new engines for aircraft delivery from
the summer of 2016. The engines are expected to be delivered to the right level
of maturity to enable the NEO ramp-up in the second half of 2016. Overall, the
A320 ramp-up preparation continues despite temporary supply chain challenges
that are expected to be recovered by year-end.
In the context of its internal compliance improvement programme, Airbus Group
discovered certain mistakes and omissions relating to information provided in
respect to consultants and other third parties in applications for export credit
financing for Airbus customers and as a result has informed the relevant U.K.
authorities. Some Export Credit Agency (ECA) financing has been temporarily
suspended. The Group is cooperating with the relevant ECAs to resolve this issue
as soon as possible and hopes to obtain financing or refinancing in the near
future.
On the A400M, following a recent Airworthiness Directive from the European
Aviation Safety Agency linked to the propeller gearbox on the engine, a thorough
technical and industrial evaluation has been launched to secure both short- and
long-term solutions. The expected impact on aircraft in service and how they can
be supported, implications on the delivery schedule and ongoing discussions with
customers are under assessment. Furthermore, industrial efficiency and military
capability remain a challenge during the ramp-up phase.
The Company is working with customers to agree a schedule of military capability
enhancement and deliveries. Overall, the cost at completion assessment will need
to be adapted accordingly, but at this stage there is not a sufficiently mature
view of the technical, commercial and industrial consequences and their
potential impact on the financial statements, which could be significant.
As part of the portfolio reshaping, an agreement was signed during the first
quarter regarding the sale of the Defence Electronics business.
Reported EBIT*((3)) of ? 365 million (Q1 2015: ? 1,241 million) included net
one-offs totalling ? -136 million, representing the negative impact from
the dollar pre-delivery payment mismatch and balance sheet revaluation. The
first quarter of 2015 included a net gain of ? 697 million from the sale of
shares in Dassault Aviation.
Net income((4)) in the first quarter of 2016 was ? 399 million (Q1 2015: ? 792
million) with earnings per share of ? 0.51 (Q1 2015: ? 1.01). The finance result
of ? 193 million (Q1 2015: ? -366 million) included a positive revaluation of
over ? 280 million mainly linked to the strengthening of the euro. In the first
quarter of 2015, this revaluation had a negative impact.
Free cash flow before mergers and acquisitions amounted to ? -2,986 million (Q1
2015:
? -1,136 million), reflecting the back-loaded delivery profile in 2016 and the
ramp-up preparation for the A320, A320neo and A350. Free cash flow was ? -3,131
million (Q1 2015: ? 452 million). The net cash position on 31 March, 2016 was ?
6.4 billion (year-end 2015: ? 10.0 billion) with a gross cash position of ?
18.0 billion (year-end 2015: ? 19.1 billion).
Outlook
As the basis for its 2016 guidance, Airbus Group expects the world economy and
air traffic to grow in line with prevailing independent forecasts and assumes no
major disruptions.
2016 earnings and free cash flow guidance is based on a constant perimeter.
In 2016, Airbus expects to deliver more than 650 aircraft and the commercial
order book is expected to grow.
In 2016, before M&A, Airbus Group expects stable EBIT* before one-off and EPS*
before one-off compared to 2015.
In 2016, before M&A, Airbus Group expects to deliver stable free cash flow
compared to 2015.
* Airbus Group 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 former
EADS merger and Airbus Combination, as well as impairment charges thereon.
About Airbus Group
Airbus Group is a global leader in aeronautics, space and related services. In
2015, the Group - comprising Airbus,
Airbus Defence and Space and Airbus Helicopters - generated revenues of ? 64.5
billion and employed a workforce of around 136,600.
Contacts for the media:
Martin Agüera +49 (0) 175 227 4369
Rod Stone +33 (0) 6 30 521 993
Note to editors: Live Transmission of the Airbus Group Analyst Conference Call
You can listen to the First Quarter 2016 Results Analyst Conference Call with
Chief Financial Officer Harald Wilhelm today at 08:30 a.m. CET via the Airbus
Group website: www.airbusgroup.com/Q12016. A recording of the call will be made
available in due course.
Airbus Group - First Quarter (Q1) Results 2016
(Amounts in euro)
+-----------------------------------------+----------+-----------+--------+
| Airbus Group | Q1 2016 | Q1 2015 | Change |
+-----------------------------------------+----------+-----------+--------+
| Revenues, in millions | 12,183 | 12,078 | +1% |
| | | | |
| thereof defence, in millions | 2,290 | 2,284 | 0% |
+-----------------------------------------+----------+-----------+--------+
| EBITDA ((2)), in millions | 874 | 1,757 | -50% |
+-----------------------------------------+----------+-----------+--------+
| EBIT before one-offs ((3)), in millions | 501 | 651 | -23% |
+-----------------------------------------+----------+-----------+--------+
| EBIT ((3)), in millions | 365 | 1,241 | -71% |
+-----------------------------------------+----------+-----------+--------+
| Research & Development expenses, | 547 | 701 | -22% |
| in millions | | | |
+-----------------------------------------+----------+-----------+--------+
| Net Income ((4)), in millions | 399 | 792 | -50% |
+-----------------------------------------+----------+-----------+--------+
| Earnings Per Share (EPS) ((4)) | 0.51 | 1.01 | -50% |
+-----------------------------------------+----------+-----------+--------+
| Free Cash Flow (FCF), in millions | -3,131 | 452 | - |
+-----------------------------------------+----------+-----------+--------+
| Free Cash Flow | -2,986 | -1,136 | - |
| before M&A, in millions | | | |
+-----------------------------------------+----------+-----------+--------+
| Free Cash Flow | -2,876 | 483 | - |
| before Customer Financing, in millions | | | |
+-----------------------------------------+----------+-----------+--------+
| Order Intake ((1)), in millions | 7,245 | 20,994 | -65% |
+-----------------------------------------+----------+-----------+--------+
+-----------------------------------------+----------+-----------+--------+
| Airbus Group | 31 March | 31 Dec | Change |
| | 2016 | 2015 | |
+-----------------------------------------+----------+-----------+--------+
| Order Book ((1)), in millions | 956,980 | 1,005,864 | -5% |
| | | | |
| thereof defence, in millions | 38,151 | 38,411 | -1% |
+-----------------------------------------+----------+-----------+--------+
| Net Cash position, in millions | 6,438 | 10,003 | -36% |
+-----------------------------------------+----------+-----------+--------+
| Employees | 135,801 | 136,574 | -1% |
+-----------------------------------------+----------+-----------+--------+
For footnotes please refer to page 7.
+-----------------------------+--------------------+-----------------+
|by Division | Revenues | EBIT( (3)) |
+-----------------------------+------+------+------+----+-----+------+
|(Amounts in millions of Euro)| Q1 | Q1 |Change| Q1 | Q1 |Change|
| | 2016 | 2015 | |2016|2015 | |
+-----------------------------+------+------+------+----+-----+------+
|Commercial Aircraft |8,668 |8,565 | +1% |290 | 419 | -31% |
+-----------------------------+------+------+------+----+-----+------+
|Helicopters |1,158 |1,285 | -10% | 33 | 52 | -37% |
+-----------------------------+------+------+------+----+-----+------+
|Defence and Space |2,534 |2,603 | -3% | 90 | 133 | -32% |
+-----------------------------+------+------+------+----+-----+------+
|Headquarters / Eliminations | -177 | -375 | - |-48 | 637 | - |
+-----------------------------+------+------+------+----+-----+------+
|Total |12,183|12,078| +1% |365 |1,241| -71% |
+-----------------------------+------+------+------+----+-----+------+
+-------------------------------+---------------------------+
| by Division | EBIT before one-offs((3)) |
+-------------------------------+------+------+-------------+
| (Amounts in millions of Euro) | Q1 | Q1 | Change |
| | 2016 | 2015 | |
+-------------------------------+------+------+-------------+
| Commercial Aircraft | 407 | 569 | -28% |
+-------------------------------+------+------+-------------+
| Helicopters | 33 | 52 | -37% |
+-------------------------------+------+------+-------------+
| Defence and Space | 109 | 90 | +21% |
+-------------------------------+------+------+-------------+
| Headquarters / Eliminations | -48 | -60 | - |
+-------------------------------+------+------+-------------+
| Total | 501 | 651 | -23% |
+-------------------------------+------+------+-------------+
+-----------------------------+-------------------+-------------------------+
|by Division |Order Intake ((1)) | Order Book ((1)) |
+-----------------------------+-----+------+------+--------+---------+------+
|(Amounts in millions of Euro)| Q1 | Q1 |Change|31 March| 31 Dec |Change|
| |2016 | 2015 | | 2016 | 2015 | |
+-----------------------------+-----+------+------+--------+---------+------+
|Commercial Aircraft |4,311|17,217| -75% |904,589 | 952,450 | -5% |
+-----------------------------+-----+------+------+--------+---------+------+
|Helicopters |1,004|1,428 | -30% | 11,615 | 11,769 | -1% |
+-----------------------------+-----+------+------+--------+---------+------+
|Defence and Space |2,515|2,390 | +5% | 42,596 | 42,861 | -1% |
+-----------------------------+-----+------+------+--------+---------+------+
|Headquarters / Eliminations |-585 | -41 | - | -1,820 | -1,216 | - |
+-----------------------------+-----+------+------+--------+---------+------+
|Total |7,245|20,994| -65% |956,980 |1,005,864| -5% |
+-----------------------------+-----+------+------+--------+---------+------+
For footnotes please refer to page 7.
Footnotes:
1. Contributions from commercial aircraft activities to Order Intake and Order
Book based on list prices.
2. Earnings before interest, taxes, depreciation, amortisation and
exceptionals.
3. Earnings before interest and taxes, pre goodwill impairment and
exceptionals.
4. Airbus Group continues to use the term Net Income. It is identical to Profit
for the period attributable to equity owners of the parent as defined by
IFRS Rules.
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
Airbus Group's 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
Airbus Group's 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
Airbus Group's 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 5 April 2016. For more information,
please refer to www.airbusgroup.com.
Airbus Group Q1 2016 Results Presentation:
http://hugin.info/143449/R/2007683/742325.pdf
Airbus Group Q1 2016 Financial Statements:
http://hugin.info/143449/R/2007683/742324.pdf
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GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Airbus Group via GlobeNewswire
[HUG#2007683]
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Datum: 28.04.2016 - 08:37 Uhr
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