DGAP-Ad-hoc: Airbus SE / Key word(s): Half Year Results
Airbus SE: Airbus reports Half-Year (H1) 2019 results
31-Jul-2019 / 06:30 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, 31 July 2019*
*Airbus reports Half-Year (H1) 2019 results*
· Commercial aircraft environment robust
· H1 financials mainly reflect A320 Family ramp-up and NEO transition
· Revenues EUR 30.9 billion; EBIT Adjusted EUR 2.5 billion
· EBIT (reported) EUR 2.1 billion; EPS (reported) EUR 1.54
· 2019 guidance maintained
Airbus SE (stock exchange symbol: AIR) reported Half-Year (H1) 2019
consolidated financial results(1) and maintained its guidance for the
full-year.
"The half-year financial performance mainly reflects the ramp-up in
production of A320 Family aircraft and transition to the more efficient NEO
version, as well as further progress on the A350 financial performance,"
said Airbus Chief Executive Officer Guillaume Faury. "We continue to see
good demand for our competitive product portfolio, including the new
A321XLR, as shown by the strong market endorsement at June's Le Bourget
airshow. Our operational focus is mainly on the A320neo Family ramp-up. The
second half of the year in terms of deliveries and in particular free cash
flow continues to be challenging. In defence and space, we signed the
important contract amendment for the A400M programme."
Gross commercial aircraft orders totalled 213 (H1 2018: 261 aircraft) with
net orders of 88 aircraft (H1 2018: 206 aircraft). The order book stood at
7,276 commercial aircraft as of 30 June 2019. Net helicopter orders of 123
units (H1 2018: 143 units) included 23 NH90s for Spain and 11 H145s in the
second quarter. Airbus Defence and Space's order intake by value totalled
EUR 4.2 billion, with second quarter bookings including the A400M Global
Support Step 2 contract with OCCAR and next generation geostationary Ka-band
communications satellites.
Consolidated *revenues *increased to EUR 30.9 billion (H1 2018: EUR 25.0
billion), mainly reflecting higher commercial aircraft deliveries and
favourable foreign exchange. At Airbus, a total of 389 commercial aircraft
were delivered (H1 2018: 303 aircraft), comprising 21 A220s, 294 A320
Family, 17 A330s, 53 A350s and 4 A380s. Airbus Helicopters delivered 143
units (H1 2018: 141 units) with stable revenues driven by programme phasing
compensated by growth in services. Higher revenues at Airbus Defence and
Space were supported by 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 - more than doubled to EUR
2,529 million (H1 2018: EUR 1,162 million), driven by commercial aircraft
activities at Airbus.
Airbus' EBIT Adjusted increased to EUR 2,338 million (H1 2018: EUR 867
million), mainly reflecting the A320 ramp-up and NEO premium, further
progress on the A350 financial performance and an improvement in foreign
exchange rates in the second quarter.
On the A320 programme, NEO aircraft represented 234 out of the total 294
deliveries. The ramp-up in production of the Airbus Cabin Flex (ACF) version
of the A321 remains challenging. Given the recent commercial success of the
A321 ACF and XLR as demonstrated at Le Bourget, Airbus is studying different
options to increase the share of the A321 in current A320 Family production
capacity. On the A330 programme, the focus is on the ramp-up of the NEO
version to secure deliveries in the second half of 2019. A330neo deliveries
totalled 13 in the half-year. Good progress was made on A350 recurring cost
convergence and the programme is on track to reach the breakeven target for
the year. Meanwhile, progress was made in preparing the winding down of the
A380 programme and securing in-service support for the next decades.
Airbus Helicopters' EBIT Adjusted totalled EUR 125 million (H1 2018: EUR 135
million), reflecting a less favourable delivery mix partially compensated by
an increased contribution from services.
EBIT Adjusted at Airbus Defence and Space totalled EUR 233 million (H1 2018:
EUR 309 million), mainly reflecting efforts to support ongoing campaigns.
Seven A400M military transport aircraft were delivered in the half-year,
bringing the in-service fleet to 81 as of 30 June. The A400M contract
amendment was signed with OCCAR during the second quarter, concluding the
discussions on the programme's Global Rebaselining. With this contract
amendment, an agreement has been reached on a new capabilities development
plan, a new production delivery schedule, a new retrofit delivery schedule
and new financial terms. The anticipated impact of the Global Rebaselining
was reflected in the 2018 results.
Consolidated *self-financed R&D* *expenses *totalled EUR 1,423 million (H1
2018: EUR 1,403 million).
Consolidated *EBIT*(reported) amounted to EUR 2,093 million (H1 2018: EUR
1,120 million), including Adjustments totalling a net EUR -436 million.
These Adjustments mainly comprised:
· A negative EUR -208 million related to the prolonged suspension of
defence export licences to Saudi Arabia by the German government, of which
EUR -18 million were booked in Q2 2019;
· A negative EUR -136 million related to A380 programme cost, of which EUR
-75 million was booked in Q2 2019, as part of Airbus' continuous
assessment of assets recoverability and the quarterly review of onerous
contract provision assumptions;
· A total of EUR -90 million of other costs, including compliance.
Consolidated reported *earnings per share *of EUR 1.54 (H1 2018: EUR 0.64)
included a negative impact from the financial result, mainly driven by
losses on foreign exchange hedges recognised in the context of the prolonged
suspension of defence export licences. The financial result was EUR -215
million (H1 2018: EUR -303 million). The effective tax rate included the
impact from charges related to the prolonged suspension of defence export
licences, as well as the reassessment of tax assets and liabilities.
Consolidated *net income(2)* was EUR 1,197 million (H1 2018: EUR 496
million).
Consolidated *free cash flow* *before M&A and customer financing *ofEUR
-3,981 million
(H1 2018: EUR -3,968 million) mainly reflected the working capital build
supporting deliveries in the second half of 2019. Consolidated *free cash
flow* was EUR -4,116 million (H1 2018: EUR -3,797 million).
The consolidated *net cash position* was EUR 6.6 billion on 30 June 2019
(year-end 2018: EUR 13.3 billion) after the 2018 dividend payment of EUR 1.3
billion in the second quarter. The *gross cash position* on 30 June was EUR
17.8 billion (year-end 2018: EUR 22.2 billion).
Following a review of demographic and underlying assumptions, the pension
provision increased in the second quarter. This reflected the global
decrease in the discount rate as well as the change in management's
estimates for the valuation of employee benefits in Germany.
In response to developments in the WTO dispute, the United States Trade
Representative (USTR) in April published a list of EU products upon which
the USTR intends to apply tariffs, which included new aircraft and
helicopters as well as major components for aircraft manufacturing in the
US. If the USTR decides to impose tariffs on Airbus products and other
products from the EU, this could significantly affect the delivery of new
Airbus aircraft and helicopters to the US market and have a negative effect
on Airbus' financial condition and results of operations. The potential
decision of the EU to impose tariffs on US products could come at a later
stage. Airbus continues to support an outcome through a negotiated
solution(3).
*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 *
At 08:15 CEST on 31 July, you can listen to the *H1 2019 Results Analyst
Conference* *Call* with *Chief Executive Officer Guillaume Faury* and *Chief
Financial Officer Dominik Asam* via the Airbus website. 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 Consolidated - Half-Year (H1) Results 2019 *
(Amounts in Euro)
*Airbus Consolidated* *H1 2019* H1 2018 Change
*Revenues*, in millions *30,866* 24,970 +24%
thereof defence, in millions *4,085* 4,041 +1%
*EBIT Adjusted*, in millions *2,529* 1,162 +118%
*EBIT (reported)*, in millions *2,093* 1,120 +87%
*Research & Development expenses*, *1,423* 1,403 +1%
in millions
*Net Income(2)*, in millions *1,197* 496 +141%
*Earnings Per Share (EPS) * *1.54 * 0.64 +141%
*Free Cash Flow (FCF)*, in millions *-4,116* -3,797 -
*Free Cash Flow * *-3,998* -4,069 -
*before M&A*, in millions
*Free Cash Flow before M&A* *-3,981* -3,968 -
*and Customer Financing*, in millions
*Airbus Consolidated* *30 June* 31 Dec Change
*2019* 2018
*Net Cash position*, in millions *6,565* 13,281 -51%
*Employees* *136,343* 133,671 +2%
*By *Revenues* *EBIT(reported)*
Business
Segment*
(Amounts in *H1* H1 Change *H1 * H1 Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *24,043* 18,546 +30% *2,151* 773 +178%
Airbus *2,371* 2,388 -1% *124* 114 +9%
Helicopters
Airbus *5,015* 4,652 +8% *-15 * 382 -
Defence and
Space
Transversal *-563* -616 - *-167* -149 -
&
Elimination
s
*Total* *30,866* 24,970 +24% *2,093* 1,120 +87%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *H1 * H1 Change
*2019* 2018
Airbus *2,338* 867 +170%
Airbus Helicopters *125* 135 -7%
Airbus Defence and Space *233* 309 -25%
Transversal & Eliminations *-167* -149 -
*Total* *2,529* 1,162 +118%
*By *Order Intake (net)* *Order Book*
Busine
ss
Segmen
t*
*H1 * H1 Change *30 30 June Change
*2019* 2018 June* 2018
*2019*
Airbus *88* 206 -57% *7,276 7,168 +2%
, in *
units
Airbus *123* 143 -14% *697* 694 0%
Helico
pters,
in
units
Airbus *4,220* 3,184 +33% N/A N/A N/A
Defenc
e and
Space,
in
millio
ns of
Euro
*Airbus Consolidated - Second Quarter (Q2) Results 2019*
(Amounts in Euro)
*Airbus *Q2 2019* Q2 2018 Change
Consolidated*
*Revenues*, in *18,317* 14,851 +23%
millions
*EBIT Adjusted*, in *1,980* 1,148 +72%
millions
*EBIT (reported)*, *1,912* 921 +108%
in millions
*Net Income(2)*, in *1,157* 213 +443%
millions
*Earnings Per Share *1.49* 0.27 +452%
(EPS)*
*By *Revenues* *EBIT (reported)*
Business
Segment*
(Amounts in *Q2* Q2 Change *Q2* Q2 Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *14,346* 11,324 +27% *1,759* 775 +127%
Airbus *1,364* 1,427 -4% *115* 124 -7%
Helicopters
Airbus *2,903* 2,435 +19% *102* 117 -13%
Defence and
Space
Transversal *-296* -335 - *-64* -95 -
&
Elimination
s
*Total* *18,317* 14,851 +23% *1,912* 921 +108%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *Q2* Q2 Change
*2019* 2018
Airbus *1,802* 908 +98%
Airbus Helicopters *110* 138 -20%
Airbus Defence and Space *132* 197 -33%
Transversal & Eliminations *-64* -95 -
*Total* *1,980* 1,148 +72%
*Q2 2019 revenues *increased by 23%, mainly driven by higher commercial
aircraft deliveries, favourable foreign exchange and higher revenues at
Airbus Defence and Space.
*Q2 2019 EBIT Adjusted *increased by 72%, mainly driven by the A320 ramp-up
and transition, progress on the A350 XWB programme, and favourable foreign
exchange.
*Q2 2019 EBIT (reported) *increased by 108%. It reflected net Adjustments of
EUR -68 million booked in the quarter. Net Adjustments in the second quarter
of 2018 amounted to EUR -227 million.
*Q2 2019 Net Income *increased by 443%, mainly driven by the higher EBIT,
the positive impact from the revaluation of financial instruments and the
lower effective tax rate.
*EBIT (reported) / EBIT Adjusted Reconciliation*
The table below reconciles EBIT (reported) with EBIT Adjusted.
*Airbus Consolidated* *H1 2019*
(Amounts in millions of Euro)
*EBIT (reported)* *2,093*
*thereof:*
Defence export ban *-208*
A380 programme cost *-136*
Others *-90*
$ PDP mismatch/Balance Sheet revaluation *-2*
*EBIT Adjusted* *2,529*
*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 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 (all as recorded in
the consolidated statement of
financial position).
*Net cash position* For the definition of the
*alternative performance
measure* net cash position, see
Registration Document, MD&A
section 2.1.6.
*FCF* For the definition of the
*alternative performance
measure* free cash flow, see
Registration Document, MD&A
section 2.1.6.1. 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, especially when there
is higher uncertainty around
customer financing activities.
*Footnotes:*
*1) *H1 2019 figures include the A220 programme, which was consolidated into
Airbus on 1 July 2018.
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) *For more details on the WTO dispute, please refer to the Financial
Statements and, in particular, note 23, "Litigation and Claims" of the
Unaudited Condensed Interim Financial Information of Airbus SE for the
six-month period ended 30 June 2019 available on Airbus' website
(www.airbus.com [1]).
*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 2018 Airbus SE "Registration
Document" dated 29 July 2019, 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.
31-Jul-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
EQS News ID: 849251
End of Announcement DGAP News Service
849251 31-Jul-2019 CET/CEST
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=47fe5f0e731c7c89a6dfb1726fcda07f&application_id=849251&site_id=vwd&application_name=news
(END) Dow Jones Newswires
July 31, 2019 00:30 ET (04:30 GMT)
© 2019 Dow Jones News
