Airbus SE
Airbus reports First Quarter (Q1) 2017 results
Airbus SE / Key word(s): Quarter Results Ad-hoc release, 27 April 2017 Airbus reports First Quarter (Q1) 2017 results – Revenues EUR13bn; EBIT Adjusted EUR240m; EBIT (reported) EUR852m; EPS (reported) EUR0.79 – Q1 financials reflect delivery phasing and divestments – Strong commercial aircraft backlog supporting ramp-up plans – 2017 guidance confirmed Airbus SE (stock exchange symbol: AIR) reported first quarter 2017 results and confirmed its guidance for the full year. “Our first quarter performance doesn’t offer any big surprises: we are on track for our full year EBIT and free cash flow objectives and we took a nice uptick in cash proceeds from the sale of Defence Electronics,” said Airbus Chief Executive Officer Tom Enders. “New order activity was low in Q1 as predicted but let’s not forget that our strong order book of over 6,700 commercial aircraft supports our ongoing production ramp-up. Programme execution remains key for all our businesses!” Order intake(1) totalled EUR 3.8 billion (Q1 2016: EUR 7.2 billion) with the order book(1) valued at EUR 1,030 billion as of 31 March 2017 (year-end 2016: EUR 1,060 billion) and supporting the ramp-up plans. Net commercial aircraft orders amounted to six aircraft (Q1 2016: 10 aircraft), with the backlog comprising 6,744 aircraft as of 31 March. Net helicopter orders rose to 60 Revenues increased seven percent to EUR 13.0 billion (Q1 2016: EUR 12.2 billion). Commercial Aircraft’s revenues rose 13 percent, with deliveries of 136 aircraft (Q1 2016: 125 aircraft) including a higher proportion of A350 XWBs. Helicopters’ revenues increased by 11 percent with deliveries of 78 units (Q1 2016: 56 units). Lower revenues at Defence and Space were mainly driven by the perimeter change impact from portfolio reshaping but were stable on a comparable basis. The sale of the Defence Electronics business took place in the first quarter. 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 240 million (Q1 2016: EUR 498 million). Commercial Aircraft’s EBIT Adjusted was EUR 281 million (Q1 2016: EUR 406 million), mainly reflecting the aircraft delivery mix, transition pricing and some higher ramp-up costs. Good progress was made on the A350 XWB with 13 aircraft delivered in the quarter. Despite higher deliveries and revenues, Helicopters’ EBIT Adjusted totalled EUR -2 million Defence and Space’s EBIT Adjusted declined to EUR 63 million (Q1 2016: EUR 107 million), mainly reflecting the perimeter change with the underlying business performing as expected. Four A400Ms were delivered compared to two aircraft in the first quarter of 2016. Discussions were entered into with customers as planned. Challenges remain on meeting contractual capabilities, securing sufficient export orders in time, cost reduction and commercial exposure, which could be significant. Group self-financed R&D expenses were stable at EUR 548 million (Q1 2016: EUR 547 million). EBIT (reported) of EUR 852 million (Q1 2016: EUR 362 million) included Adjustments totalling a net – A net capital gain of EUR 560 million from the divestment of the Defence Electronics business; – A positive impact of EUR 55 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation; – A net negative impact of EUR 3 million related to other portfolio changes at Defence and Space.
Free cash flow before M&A and customer financing was EUR -1,269 million (Q1 2016: EUR -2,731 million), reflecting the strong focus on working capital amid the production ramp-up and back-loaded deliveries. Free cash flow of EUR -1,116 million (Q1 2016: EUR -3,131 million) included net proceeds of around EUR 600 million from the Defence Electronics disposal. Outlook Airbus’ 2017 earnings and free cash flow guidance is based on a constant perimeter: – Airbus expects to deliver more than 700 commercial aircraft. – 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. CEST today, you can listen to the First Quarter 2017 Results Analyst Conference Call with Chief Financial Officer Harald Wilhelm via the Airbus website: www.airbusgroup.com/Q12017. 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.
(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 Q1 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) 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.airbusgroup.com
27-Apr-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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