Airbus SE
Airbus SE: Airbus reports Half-Year (H1) 2017 results
Airbus SE / Key word(s): Half Year Results Ad-hoc release, 27 July 2017 Airbus reports Half-Year (H1) 2017 results
Airbus SE (stock exchange symbol: AIR) reported half-year 2017 financial results and maintained its guidance for the full year. “The commercial aircraft environment remains healthy while the robust order backlog continues to support our production ramp-up plans. However, we are facing challenges due to ongoing engine issues but we have a clear road-map in place and have maintained our full-year guidance. Achieving the aircraft delivery target depends on the engine suppliers meeting their commitments,” said Airbus Chief Executive Officer Tom Enders. “Our focus in the second half remains squarely on programme execution and delivering the ramp-up. In Helicopters, resolving the H225 situation while supporting our customers is a top priority and at Defence and Space we continue our efforts to de-risk the A400M programme. Over the longer term, Airbus will benefit from its strong focus on innovation and more efficient and integrated structure.” Order intake(1) totalled EUR 37.2 billion (H1 2016: EUR 39.1 billion) with the order book(1) valued at EUR 981 billion as of 30 June 2017 (year-end 2016: EUR 1,060 billion). A total of 203 net commercial aircraft orders were received (H1 2016: 183 aircraft), with the order backlog comprising 6,771 aircraft at the end of June. During June’s Paris Air Show, 144 firm orders and 202 commitments were announced. Net helicopter orders increased to 151 (H1 2016: 127 net orders), including 30 H225Ms for Kuwait. Defence and Space’s order intake was impacted by the perimeter changes from portfolio reshaping and some slowdown in telecommunication satellites. Good order momentum was seen in Military Aircraft with orders for 19 Light and Medium aircraft booked. Revenues were stable at EUR 28.7 billion (H1 2016: EUR 28.8 billion) despite the perimeter changes in Defence and Space. Commercial Aircraft revenues rose three percent with deliveries of 306(2) aircraft (H1 2016: 298 aircraft) comprising 239 A320 Family, 30 A350 XWBs, 31 A330s and six A380s. Helicopters’ revenues increased nine percent with deliveries of 190 units (H1 2016: 163 units). Revenues at Defence and Space reflected a negative impact of around EUR 1.2 billion from the perimeter changes. EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled EUR 1,099 million (H1 2016: EUR 1,679 million). Commercial Aircraft’s EBIT Adjusted was EUR 954 million (H1 2016: EUR 1,269 million), reflecting the aircraft delivery mix and phasing as well as transition pricing. Helicopters’ EBIT Adjusted totalled EUR 93 million (H1 2016: EUR 144 million), reflecting an unfavourable mix mainly from lower commercial flight hours in services as well as the impact from the partial H225 grounding. In July, UK and Norwegian aviation authorities lifted the H225 flight ban. However, the implementation of enhanced safety measures will require a plan of checks, modifications and preventive inspections. Airbus will continue to support its customers, as and when required, to progressively bring the H225 fleet back into operations. Defence and Space’s EBIT Adjusted declined to EUR 248 million (H1 2016: EUR 322 million), reflecting the perimeter change and was broadly stable on a comparable basis. Eight A400Ms were delivered compared to five aircraft in the first half of 2016. Airbus has continued with A400M development activities toward achieving the revised capability roadmap shared with the customer. However, achievement of the contractual technical capabilities and associated costs remain highly challenging. Challenges also remain on securing sufficient export orders in time, on cost reductions, industrial efficiency and commercial exposure, which could all impact significantly the programme. Discussions to de-risk the A400M programme are ongoing with the Nations and OCCAR. Group self-financed R&D expenses declined to EUR 1,288 million (H1 2016: EUR 1,309 million). EBIT (reported) of EUR 1,791 million (H1 2016: EUR 1,851 million) included Adjustments totalling a net EUR +692 million compared to net Adjustments of EUR +172 million in the first half of 2016. The H1 2017 Adjustments comprised:
Outlook Airbus’ 2017 earnings and Free Cash Flow guidance is based on a constant perimeter:
The perimeter change in Defence and Space is expected to reduce EBIT Adjusted and Free Cash Flow before M&A and Customer Financing by around EUR 150 million and EPS Adjusted by around 14 cents. Contacts for the media:
Note to editors: Live Webcast of the Analyst Conference Call At 08:30 a.m. CEST today, you can listen to the Half-Year 2017 Results Analyst Conference Call with Chief Executive Officer Tom Enders and Chief Financial Officer Harald Wilhelm via www.airbus.com. The analyst call presentation can also be found on the company website. A recording will be made available in due course. For a reconciliation of Airbus’ KPIs to “reported IFRS” please refer to the analyst presentation.
Airbus – Second Quarter Results (Q2) 2017 (Amounts in Euro)
Q2 2017 EBIT Adjusted decreased by 27 percent, mainly driven by a decrease in Commercial Aircraft reflecting unfavourable delivery and phasing impact, transition pricing and ramp-up costs, partly mitigated by an R&D tailwind. Q2 2017 EBIT (reported) decreased to EUR 939 million. It reflects net positive Adjustments of EUR 80 million booked in Q2 related to a net charge of EUR -70 million on the A400M programme, portfolio Adjustments in Defence and Space of EUR 31 million and the impact from foreign exchange resulting from the dollar pre-delivery payment mismatch and balance sheet revaluation of EUR 119 million. Q2 2016 Adjustments amounted to approximately EUR 300 million. In addition, the Q2 2017 net income decreased due to higher income taxes, partially compensated by positive foreign exchange effects.
(At the end of the 2016 financial year, Airbus implemented the European Securities and Markets Authority’s guidelines on Alternative Performance Measures. As a result, certain items are no longer labelled as “one-offs”. Such items are now labelled as “Adjustments”. Airbus no longer measures and communicates its performance on the basis of “EBIT*” but on the basis of “EBIT” (reported) as the difference between the two KPIs, the so called “pre-goodwill and exceptionals”, has become less relevant. There is no change to the substance of the guidance. Terminology has changed such that “EBIT* before one-offs” has been replaced by “EBIT Adjusted” and “EPS* before one-offs” replaced by “EPS Adjusted”. Please refer to the Glossary for definitions of the Alternative Performance Measures.)
EBIT (reported) / EBIT Adjusted Reconciliation The table below reconciles EBIT (reported) with EBIT Adjusted.
Reconciliation of H1 2016 EBIT* before one-off to EBIT Adjusted
*Pre-goodwill impairment and exceptionals. Glossary
Footnotes:
1) Contributions from commercial aircraft activities to Order Intake and Order Book based on list prices. 2) Thereof 304 deliveries with revenue recognition. 3) Airbus 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’ 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’ 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’ 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 4 April 2017. For more information, please refer to www.airbus.com
27-Jul-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Airbus SE |
P.O. Box 32008 | |
2303 DA Leiden | |
Netherlands | |
Phone: | 00 800 00 02 2002 |
Fax: | +49 (0)89 607 – 26481 |
Internet: | www.airbusgroup.com |
ISIN: | NL0000235190 |
WKN: | 938914 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
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