Airbus SE
Airbus SE: Airbus reports Nine-Month (9m) 2017 results
Airbus SE / Key word(s): 9-month figures Ad-hoc release, 31 October 2017 Airbus reports Nine-Month (9m) 2017 results – Revenues EUR43bn; EBIT Adjusted EUR1.8bn; EBIT (reported) EUR2.3bn; EPS (reported) EUR2.39 – Commercial aircraft market healthy, robust backlog supports ramp-up plans – Engine delays impact 9m results, focus on fourth quarter deliveries and ramp-up – 2017 guidance confirmed Airbus SE (stock exchange symbol: AIR) reported nine-month 2017 financial results and confirmed its guidance for the full year. “The strong backlog and a healthy market environment continue to support our commercial aircraft production ramp-up plans,” said Airbus Chief Executive Officer Tom Enders. “We confirm our outlook even though this year’s delivery schedule is extremely back-loaded, largely due to the well-known engine problems plaguing our A320neo Family.” Order intake(1) totalled EUR 50.8 billion (9m 2016: EUR 73.2 billion) with the order book(1) valued at EUR 945 billion as of 30 September 2017 (year-end 2016: EUR 1,060 billion). A total of 271 net commercial aircraft orders were received (9m 2016: 380 aircraft), with the order backlog comprising 6,691 aircraft at the end of September. Net helicopter orders totalled 210 units (9m 2016: 211 units), including 14 H175s in the third quarter. At Defence and Space, the good order momentum continued in Military Aircraft with five A330 MRTTs booked in total for Germany and Norway in the third quarter. The overall order intake at the division was impacted by perimeter changes from portfolio reshaping and the slow telecommunications satellite market. Revenues were stable at EUR 43.0 billion (9m 2016: EUR 42.7 billion) despite the perimeter changes at Defence and Space and were higher on a comparable basis. Commercial Aircraft revenues rose four percent with deliveries of 454(2) aircraft (9m 2016: 462 aircraft) comprising 350 A320 Family, 50 A350 XWBs, 45 A330s and nine A380s. Helicopters’ revenues were slightly higher with deliveries of 266 units (9m 2016: 258 units). Revenues at Defence and Space reflected the negative impact of around EUR 1.4 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 1,796 million (9m 2016: EUR 2,408 million). Commercial Aircraft’s EBIT Adjusted of EUR 1,545 million (9m 2016: EUR 1,836 million) reflected the aircraft delivery mix and phasing as well as transition pricing. Helicopters’ EBIT Adjusted declined to EUR 165 million (9m 2016: EUR 200 million), reflecting the unfavourable mix mainly from lower commercial flight hours in services and the impact associated with the past grounding of the H225. This was partially mitigated by the division’s transformation efforts. Airbus continues to work with its customers on bringing the civil H225 fleet back into full operation. Defence and Space’s EBIT Adjusted was EUR 357 million (9m 2016: EUR 436 million), reflecting the perimeter change and was broadly stable on a comparable basis. Group self-financed R&D expenses declined to EUR 1,918 million (9m 2016: EUR 2,015 million). EBIT (reported) of EUR 2,312 million (9m 2016: EUR 2,356 million) included Adjustments totalling a net EUR +516 million compared to net Adjustments of EUR -52 million in the first nine months of 2016. The 9m 2017 Adjustments comprised: – A charge of EUR 150 million on the A400M programme, including EUR 80 million in the third quarter reflecting the production adjustment and liquidated damages incurred; – A positive impact of EUR 43 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation; – An updated net capital gain of EUR 604 million from the divestment of the Defence Electronics business; – A net positive impact of EUR 19 million related to other portfolio changes at Defence and Space.
The net cash position on 30 September 2017 was EUR 6.7 billion (year-end 2016: EUR 11.1 billion) after the 2016 dividend payment of EUR 1.0 billion in the second quarter with a gross cash position of EUR 18.0 billion (year-end 2016: EUR 21.6 billion). The investigations initiated by the UK’s Serious Fraud Office (SFO) and France’s Parquet National Financier (PNF) following self-disclosure by Airbus to the UK authorities are ongoing. Airbus is cooperating fully with both authorities, including in respect of potential issues across Airbus’ business. The SFO and PNF investigations and any penalties potentially levied as a result could have negative consequences for Airbus. The potential imposition of any monetary penalty (and the amount thereof) or other sanction arising from the SFO and PNF investigations will depend on the ultimate factual and legal findings of the investigation, and could have a material impact on the financial statements, business and operations of Airbus. However, at this stage it is too early to determine the likelihood or extent of any such possible consequence(4). Outlook Airbus’ 2017 earnings and Free Cash Flow guidance is based on a constant perimeter: – Airbus expects to deliver more than 700 commercial aircraft, which depends on engine manufacturers meeting commitments. – Before M&A, Airbus expects mid-single-digit percentage growth in EBIT Adjusted and EPS Adjusted compared to 2016. – Free Cash Flow is expected to be similar to 2016 before M&A and Customer Financing. 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. About Airbus Contacts for the media: Note to editors: Live Webcast of the Analyst Conference Call At 08:30 a.m. CET today, you can listen to the Nine-Month 2017 Results Analyst Conference Call with 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 – Third Quarter Results (Q3) 2017 (Amounts in Euro)
Q3 2017 EBIT Adjusted decreased by four percent, reflecting a stable performance at Commercial Aircraft as the unfavourable delivery and phasing impact, transition pricing and ramp-up costs were offset by R&D tailwind and progress on the A350 industrial ramp-up. Airbus also continued its investment in innovation at Headquarters. Q3 2017 EBIT (reported) increased to EUR 521 million. It reflects net negative Adjustments of EUR -176 million booked in Q3 2017 related to a charge of EUR -80 million on the A400M programme, reflecting the production adjustment and liquidated damages incurred, portfolio Adjustments in Defence and Space of EUR 35 million and the impact from foreign exchange resulting from the dollar pre-delivery payment mismatch and balance sheet revaluation of EUR -131 million. Q3 2016 adjustments amounted to EUR -224 million. In addition, the Q3 2017 net income increased to EUR 348 million mainly driven 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 9m 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 452 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. 4) For more details on these investigations and the other litigation and claims, please refer to the Financial Statements and, in particular, note 20, “Litigation and claims” of the Unaudited Condensed Interim Financial Information of Airbus SE for the nine-month period ended 30 September 2017 available on Airbus’ website (www.airbus.com). Safe Harbour Statement: These factors include but are not limited to: – Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’ businesses; – Significant disruptions in air travel (including as a result of terrorist attacks); – Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar; – The successful execution of internal performance plans, including cost reduction and productivity efforts; – Product performance risks, as well as programme development and management risks; – Customer, supplier and subcontractor performance or contract negotiations, including financing issues; – Competition and consolidation in the aerospace and defence industry; – Significant collective bargaining labour disputes; – The outcome of political and legal processes including the availability of government financing for certain programmes and the size of defence and space procurement budgets; – Research and development costs in connection with new products; – Legal, financial and governmental risks related to international transactions; – Legal and investigatory proceedings and other economic, political and technological risks and uncertainties. As a result, Airbus’ actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. Rounding
31-Oct-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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