DGAP-Ad-hoc: Airbus SE / Key word(s): Annual Results
Airbus SE: Airbus reports strong Full-Year 2018 results, delivers on
guidance
14-Feb-2019 / 06:29 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*Ad-hoc release, 14 February 2019*
*Airbus reports strong Full-Year 2018 results, delivers on guidance *
· Strong 2018 performance, guidance delivered
· Revenues EUR 64 billion; EBIT Adjusted EUR 5.8 billion; Free Cash Flow
Before M&A and Customer Financing EUR 2.9 billion
· EBIT (reported) EUR 5.0 billion; EPS (reported) EUR 3.94
· A380 deliveries to cease in 2021
· A400M programme re-baselining negotiated
· 2018 dividend proposal EUR 1.65 per share, up 10% from 2017
· 2019 guidance confirms growth trajectory
Airbus SE (stock exchange symbol: AIR) reported strong Full-Year (FY) 2018
consolidated financial results and delivered on its guidance for all key
performance indicators.
"Though 2018 had plenty of challenges for us, we delivered on our
commitments with record profitability thanks to a strong operational
performance, particularly in Q4," said Airbus Chief Executive Officer Tom
Enders. "With an order backlog of around 7,600 aircraft, we intend to
ramp-up aircraft production even further. However, due to the lack of
airline demand we have to wind down production of the A380. This is largely
reflected in the 2018 numbers. On A400M, we succeeded in re-baselining the
programme with our government customers and their domestic approval
processes should conclude in the coming months. All in all, we have achieved
significant de-risking of the A400M in 2018. The strength of last year's
achievements is reflected in our record dividend proposal. In sum, Airbus
stands on a solid growth trajectory and our helicopter, defence and space
businesses are also in good shape as the new management team under my
successor Guillaume Faury gets ready to take over."
As of 1 July 2018, the A220 aircraft programme has been consolidated into
Airbus.
Net commercial aircraft orders totalled 747 (2017: 1,109 aircraft),
including 40 A350 XWBs, 27 A330s and 135 A220s. Showing the underlying
health of the market, the order backlog reached an industry record of 7,577
commercial aircraft at year-end, including 480 A220s.(4) Net helicopter
orders increased to 381 units (2017: 335 units) with a book-to-bill ratio
above 1 in terms of both value and units. Order intake included 15 H160 and
29 NH90 helicopters. Airbus Defence and Space's 2018 order intake of around
EUR 8.4 billion included the Eurofighter for Qatar, four A330 MRTT tanker
aircraft and two new generation telecommunication satellites.
Consolidated *order intake(4)* in 2018 totalled EUR 55.5 billion with the
consolidated *order book(4)* valued at EUR 460 billion on 31 December 2018
under IFRS 15.
Consolidated *revenues *increased to EUR 63.7 billion (2017: EUR 59.0
billion(1)), mainly reflecting the record commercial aircraft deliveries. At
Airbus, a total of 800 commercial aircraft were delivered (2017: 718
aircraft), comprising 20 A220s, 626 A320 Family, 49 A330s, 93 A350s and 12
A380s. Airbus Helicopters delivered 356 units (2017: 409 units) with
revenues stable year-on-year on a comparable basis despite the lower
deliveries. Higher revenues at Airbus Defence and Space were supported by
its Space Systems and Military Aircraft activities.
Consolidated *EBIT Adjusted *- an alternativeperformance measure and key
indicator capturing the underlying business margin by excluding material
charges or profits caused by movements in provisions related to programmes,
restructurings or foreign exchange impacts as well as capital gains/losses
from the disposal and acquisition of businesses - totalled
EUR 5,834 million (2017: EUR 3,190 million(1)), reflecting the strong
operational performance and programme execution across the Company.
Airbus' EBIT Adjusted increased to EUR 4,808 million (2017: EUR 2,383
million(1)) reflecting the higher aircraft deliveries. The strong
improvement compared to 2017 is driven by progress on the learning curve and
pricing for the A350 as well as the A320neo ramp-up and pricing premium.
Currency hedging rates also contributed favourably.
On the A220 programme, the focus remains on commercial momentum, the
production ramp-up and cost reduction. A320neo Family deliveries increased
to 386 aircraft (2017: 181 aircraft) and represented over 60% of overall
A320 Family deliveries during 2018. The first long-range A321LR was
delivered in the fourth quarter. Deliveries of the Airbus Cabin Flex version
of the A321 are expected to increase in 2019 although the ramp-up will
remain challenging. Further upgrades of the Pratt & Whitney GTF engine for
the A320neo are due to arrive in 2019. Airbus continues to monitor
in-service engine performance. Overall, the A320 programme is on track to
reach the monthly targeted production rate of 60 aircraft by mid-2019 with
rate 63 targeted in 2021. On the A330neo programme, the first A330-900s were
delivered and the smaller A330-800 conducted its maiden flight in the final
quarter of 2018. In 2019, A330neo deliveries are due to ramp-up. Airbus is
working closely with its A330neo engine partner to deliver on customer
commitments.
Following a review of its operations, Emirates is reducing its A380
orderbook by 39 aircraft with 14 A380s remaining in the backlog yet to be
delivered to Emirates. As a consequence of this decision and given the lack
of order backlog with other airlines, deliveries of the A380 will cease in
2021. The recognition of the onerous contract provision as well as other
specific provisions and the remeasurement of the liabilities have led to a
negative impact on EBIT of EUR -463 million and a positive impact on the
other financial result of EUR 177 million.
A350 deliveries increased compared to 2017 and included 14 of the larger
A350-1000s. The programme reached rate 10 in the fourth quarter of 2018. The
backlog supports this rate going forward, including the latest commercial
discussions with Etihad to reduce its A350 order by 42 A350-900, leaving 20
A350-1000 for Etihad in the backlog. Airbus will continue to improve the
A350 programme's performance to reach breakeven in 2019 and improve margins
beyond this.
Airbus Helicopters' EBIT Adjusted increased to EUR 380 million (2017: EUR
247 million(1)), reflecting higher Super Puma Family deliveries, a
favourable mix and solid underlying programme execution.
Airbus Defence and Space's EBIT Adjusted totalled EUR 935 million (2017: EUR
815 million(1)), mainly reflecting solid programme execution.
On the A400M programme, 17 aircraft were delivered during the year (2017: 19
aircraft). Airbus continued with development activities toward achieving the
revised capability roadmap. Retrofit activities are progressing in line with
the customer agreed plan. The customer Nations are now set to pursue their
domestic approval processes. An update of the contract estimate at
completion triggered a net additional charge of EUR -436 million on the
programme. This mainly reflects the outcome of the negotiations and updated
estimates on the export scenario, escalation and some cost increases. Risks
remain on the development of technical capabilities and the associated
costs, on securing sufficient export orders in time, on aircraft operational
reliability in particular with regards to engines, and on cost reductions as
per the revised baseline.
Consolidated *self-financed R&D* *expenses *totalled EUR 3,217 million
(2017: EUR 2,807 million).
Consolidated *EBIT*(reported) amounted to EUR 5,048 million (2017: EUR 2,665
million(1)), including Adjustments totalling a net EUR -786 million. These
Adjustments comprised:
· The net negative impact of EUR -463 million related to the A380
programme;
· The net additional charge of EUR -436 million for the A400M programme;
· A negative EUR -123 million related to compliance costs;
· A positive EUR 188 million related to Mergers and Acquisitions,
including the sale of Airbus DS Communications, Inc. business in the first
quarter;
· A positive EUR 129 million relating to the dollar pre-delivery payment
mismatch and balance sheet revaluation;
· A negative EUR -81 million related to other costs.
Consolidated *net income(2)* of EUR 3,054 million (2017: EUR 2,361
million(1)) and *earnings per share *of EUR 3.94 (2017: EUR 3.05(1))
included a negative impact from the financial result, mainly driven by the
evolution of the US dollar and revaluation of financial instruments. The
other financial result also included the positive adjustment of EUR 177
million from the A380. The finance result was EUR -763 million (2017: EUR
+1,161 million(1)).
Consolidated *free cash flow* *before M&A and customer financing *was stable
atEUR 2,912 million (2017: EUR 2,949 million) including the A220 dilution,
supported by the earnings performance and record deliveries. Consolidated
*free cash flow* of EUR 3,505 million (2017: EUR 3,735 million) included
around EUR 0.5 billion related to M&A activities. The consolidated *net cash
position* on 31 December 2018 was stable at EUR 13.3 billion (year-end 2017:
EUR 13.4 billion) after the 2017 dividend payment of EUR 1.2 billion and
pension funding of EUR 2.5 billion, including EUR 1.3 billion in the fourth
quarter. The gross cash position was EUR 22.2 billion (year-end 2017: EUR
24.6 billion).
The Board of Directors will propose to the Annual General Meeting the
payment of a 2018 *dividend* of EUR 1.65 per share on 17 April 2019 (2017:
EUR 1.50 per share). This reflects the strength of the 2018 achievements.
The date of record is 16 April 2019.
*Outlook *
As the basis for its 2019 guidance, the Company expects the world economy
and air traffic to grow in line with prevailing independent forecasts, which
assume no major disruptions.
The 2019 earnings and Free Cash Flow guidance is before M&A.
- Airbus targets 880 to 890 commercial aircraft deliveries in 2019.
- On that basis:
Airbus expects to deliver an increase in EBIT Adjusted of approximately +15%
compared to 2018 and FCF before M&A and Customer Financing of approximately
EUR 4 billion.
*About Airbus*
Airbus is a global leader in aeronautics, space and related services. In
2018 it generated revenues of EUR 64 billion and employed a workforce of
around 134,000. Airbus offers the most comprehensive range of passenger
airliners. Airbus is also a European leader providing tanker, combat,
transport and mission aircraft, as well as one of the world's leading space
companies. In helicopters, Airbus provides the most efficient civil and
military rotorcraft solutions worldwide.
*Contacts for the media:*
Martin Agüera +49 (0) 175 227 4369 martin.aguera@airbus.com
Rod Stone +33 (0) 6 3052 1993 rod.stone@airbus.com
*Note to editors:* *Live Webcast of the Analyst Conference Call and Annual
Press Conference*
At 07:45 CET today, you can listen to the *Full-Year* *2018 Results Analyst
Conference* *Call* with *Chief Executive Officer Tom Enders,* *Chief
Financial Officer Harald Wilhelm* and *President Airbus Commercial Aircraft
Guillaume Faury* via www.airbus.com [1]. 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.
The *Annual Press Conference* on the 2018 Results starts at 09:45 a.m. CET
and is also webcast live at www.airbus.com. [2]
*Airbus Consolidated - Full-Year (FY) Results 2018 *
(Amounts in Euro)
*Airbus Consolidated* *FY 2018* FY 2017 Change
*Revenues*, in millions *63,707* 59,022(1) +8%
thereof defence, in millions *9,903* 9,815(1) +1%
*EBIT Adjusted*, in millions *5,834* 3,190(1) +83%
*EBIT (reported)*, in *5,048* 2,665(1) +89%
millions
*Research & Development *3,217* 2,807 +15%
expenses*,
in millions
*Net Income(2)*, in millions *3,054* 2,361(1) +29%
*Earnings Per Share (EPS) * *3.94* 3.05(1) +29%
*Free Cash Flow (FCF)*, in *3,505* 3,735 -
millions
*Free Cash Flow * *2,991* 2,849 -
*before M&A*, in millions
*Free Cash Flow before M&A* *2,912* 2,949 -
*and Customer Financing*, in
millions
*Dividend per share(3)* *1.65* 1.50 +10%
*Order intake(4)* *55,521* N/A N/A
*Airbus Consolidated* *31 Dec* 31 Dec Change
*2018* 2017
*Order Book(4), *in millions *459,525 39,312 * N/A N/A N/A
thereof defence, in millions N/A
*Net Cash position*, in *13,281* 13,391 -1%
millions
*Employees* *133,671* 129,442 +3%
*By *Revenues* *EBIT(reported)*
Business
Segment*
(Amounts in *FY* FY Change *FY * FY Change
millions of *2018* 2017(1) *2018* 2017(1)
Euro)
Airbus *47,970* 43,486 +10% *4,295* 2,257 +90%
Airbus *5,934* 6,335 -6% *366* 247 +48%
Helicopters
Airbus *11,063* 10,596 +4% *676 * 462 +46%
Defence and
Space
Transversal *-1,260* -1,395 - *-289* -301 -
&
Elimination
s
*Total* *63,707* 59,022 +8% *5,048* 2,665 +89%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *FY * FY Change
*2018* 2017(1)
Airbus *4,808* 2,383 +102%
Airbus Helicopters *380* 247 +54%
Airbus Defence and Space *935 * 815 +15%
Transversal & Eliminations *-289* -255 -
*Total* *5,834* 3,190 +83%
*By *Order Intake (net)* *Order Book*
Busine
ss
Segmen
t*
*FY * FY Change *31 Dec* 31 Dec Change
*2018* 2017 *2018(4)* 2017
Airbus *747* 1,109 -33% *7,577* 7,265 +4%
, in
units
Airbus *41,519* N/A N/A *411,659* N/A N/A
, in
millio
ns of
Euro
Airbus *381* 335 +14% *717* 692 +4%
Helico
pters,
in
units
Airbus *6,339* N/A N/A *14,943* N/A N/A
Helico
pters,
in
millio
ns of
Euro
Airbus *8,441* N/A N/A *35,316* N/A N/A
Defenc
e and
Space,
in
millio
ns of
Euro
*Airbus Consolidated - Fourth Quarter (Q4) Results 2018*
(Amounts in Euro)
*Airbus *Q4 2018* Q4 2017(1) Change
Consolidated*
*Revenues*, in *23,286* 21,015 +11%
millions
*EBIT Adjusted*, in *3,096* 1,982 +56%
millions
*EBIT (reported)*, *2,365* 992 +138%
in millions
*Net Income(2)*, in *1,601* 963 +66%
millions
*Earnings Per Share *2.06* 1.24 +66%
(EPS)*
*By *Revenues* *EBIT (reported)*
Business
Segment*
(Amounts in *Q4* Q4 Change *Q4* Q4 Change
millions of *2018* 2017(1) *2018* 2017(1)
Euro)
Airbus *17,492* 15,907 +10% *2,057* 1,478 +39%
Airbus *2,179* 2,138 +2% *187* 86 +117%
Helicopters
Airbus *4,012* 3,544 +13% *197* -427 -
Defence and
Space
Transversal *-397* -574 - *-76* -145 -
&
Elimination
s
*Total* *23,286* 21,015 +11% *2,365* 992 +138%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *Q4* Q4 Change
*2018* 2017(1)
Airbus *2,468* 1,577 +56%
Airbus Helicopters *178* 86 +107%
Airbus Defence and Space *526* 418 +26%
Transversal & Eliminations *-76* -99 -
*Total* *3,096* 1,982 +56%
*Q4 2018 revenues* increased by 11%, mainly driven by higher commercial
aircraft deliveries and higher revenues at Airbus Defence and Space.
*Q4 2018 EBIT Adjusted* increased by 56%, mainly driven by progress on the
A350 XWB programme, A320 ramp-up, and favourable foreign exchange.
*Q4 2018 EBIT (reported)* increased by 138% to EUR 2,365 million. It
reflected net negative Adjustments of EUR -731 million booked in the
quarter. Net Adjustments in the fourth quarter of 2017 amounted to a net EUR
-990 million.
*Q4 2018 Net Income* increased 66% mainly driven by the higher EBIT. It was
lowered by the finance result of EUR -350 million from the evolution of the
US dollar and revaluation of financial instruments. In Q4 2017, the finance
result was positive at EUR 1,060 million.
*EBIT (reported) / EBIT Adjusted Reconciliation*
The table below reconciles EBIT (reported) with EBIT Adjusted.
*Airbus Consolidated* *FY 2018*
*EBIT (reported)*,in millions of Euro *5,048*
*thereof:*
*A380, *in millions of Euro *-463*
*A400M provision, *in millions of Euro *-436*
*Compliance costs, *in millions of Euro *-123*
*Mergers and acquisitions, *in millions of Euro *+188*
*$ PDP mismatch/Balance Sheet revaluation, *in *+129*
millions of Euro
*Others, *in millions of Euro *-81*
*EBIT Adjusted*, in millions of Euro *5,834*
*Glossary *
*KPI* *DEFINITION*
*EBIT* The Company continues to use
the term EBIT (Earnings before
interest and taxes). It is
identical to Profit before
finance result and income taxes
as defined by IFRS Rules.
*Adjustment* Adjustment, an *alternative
performance measure,* is a term
used by the Company which
includes 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.
*EBIT Adjusted* The Company uses an
*alternative performance
measure, *EBIT Adjusted*, *as a
key indicator capturing the
underlying business margin by
excluding material charges or
profits caused by movements in
provisions related to
programmes, restructurings or
foreign exchange impacts as
well as capital gains/losses
from the disposal and
acquisition of businesses.
*EPS Adjusted* EPS Adjusted is an *alternative
performance measure* of basic
earnings per share as reported
whereby the net income as the
numerator does include
Adjustments. For
reconciliation, see slide 20 of
the Analyst presentation.
*Gross cash position* The Company defines its
consolidated gross cash
position as the sum of (i) cash
and cash equivalents and (ii)
securities (as all recorded in
the consolidated statement of
financial position).
*Net cash position* For definition of the
*alternative performance
measure* net cash position, see
Registration Document, MD&A
section 2.1.3.
*FCF* For the definition of the
*alternative performance
measure* free cash flow, see
Registration Document, MD&A
section 2.1.3. It is a key
indicator which allows the
Company to measure the amount
of cash flow generated from
operations after cash used in
investing activities.
*FCF before M&A* Free cash flow before mergers
and acquisitions refers to free
cash flow as defined in the
Registration Document, MD&A
section 2.1.6.1. adjusted for
net proceeds from disposals and
acquisitions. It is an
*alternative performance
measure* and key indicator that
reflects free cash flow
excluding those cash flows
resulting from acquisitions and
disposals of businesses..
*FCF before M&A and customer Free cash flow before M&A and
financing* customer financing refers to
free cash flow before mergers
and acquisitions adjusted for
cash flow related to aircraft
financing activities. It is an
*alternative performance
measure *and indicator that may
be used from time to time by
the Company in its financial
guidance, esp. when there is
higher uncertainty around
customer financing activities,
such as during the suspension
of ECA financing support.
*Footnotes:*
*1) *Where applicable, 2017 figures have been restated to reflect the
adoption of the IFRS 15 accounting standard and new segment reporting as of
1 January, 2018. The new segment reporting reflects the merger of
Headquarters into Airbus. Where applicable, 'Airbus' refers to commercial
aircraft and the integrated functions while 'Airbus Consolidated' or 'the
Company' refers to Airbus SE_._
2) Airbus SE 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.
*3) *To be proposed to the Annual General Meeting on 10 April 2019.
*4) *The order backlog and order intake is measured under IFRS 15. The unit
backlog reflects the contractual view. The backlog value now reflects the
assessment of recoverability and net transaction price on airframe and
engine. The 2017 backlog is not being restated.
*Safe Harbour Statement:*
This press release includes forward-looking statements. Words such as
"anticipates", "believes", "estimates", "expects", "intends", "plans",
"projects", "may" and similar expressions are used to identify these
forward-looking statements. Examples of forward-looking statements include
statements made about strategy, ramp-up and delivery schedules, introduction
of new products and services and market expectations, as well as statements
regarding future performance and outlook.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and there are many
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements.
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 SE's actual results may differ materially from the
plans, goals and expectations set forth in such forward-looking statements.
For a discussion of factors that could cause future results to differ from
such forward-looking statements, see the Airbus SE "Registration Document"
dated 28 March 2018, including the Risk Factors section.
Any forward-looking statement contained in this press release speaks as of
the date of this press release. Airbus SE undertakes no obligation to
publicly revise or update any forward-looking statements in light of new
information, future events or otherwise.
*Rounding*
Due to rounding, numbers presented may not add up precisely to the totals
provided and percentages may not precisely reflect the absolute figures.
*IFRS 15 *
The Company has adopted the IFRS 15 standard as of 1 January 2018. 2017
figures are pro-forma, amended with IFRS 15 restatement and new segment
reporting.
14-Feb-2019 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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
End of Announcement DGAP News Service
775797 14-Feb-2019 CET/CEST
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(END) Dow Jones Newswires
February 14, 2019 00:29 ET (05:29 GMT)
