DGAP-Ad-hoc: Airbus SE / Key word(s): 9 Month figures
Airbus reports Nine-Month (9m) 2019 results; delivery and FCF outlook
updated, EBIT Adjusted guidance maintained
30-Oct-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, 30 October 2019*
*Airbus reports Nine-Month (9m) 2019 results; delivery and FCF outlook
updated, EBIT Adjusted guidance maintained*
· Solid commercial aircraft environment
· 9m financials mainly reflect A320neo ramp-up and A350 progress
· Revenues EUR 46.2 billion, +14% YoY; EBIT Adjusted EUR 4.1 billion, +51%
YoY
· EBIT (reported) EUR 3.4 billion; EPS (reported) EUR 2.81
· 2019 guidance updated for delivery outlook of around 860 commercial
aircraft: FCF before M&A and Customer Financing now approximately EUR 3
billion, EBIT Adjusted guidance maintained
Airbus SE (stock exchange symbol: AIR) reported Nine-Month (9m) 2019
consolidated financial results and provided full-year guidance.
"Our nine-month results are mainly driven by the performance in commercial
aircraft, reflecting both the A320neo ramp-up and progress on the A350,"
said Airbus Chief Executive Officer Guillaume Faury. "We are focused on the
A320neo ramp-up and improving the industrial flow while managing the higher
level of complexity on the A321 ACF in particular. Our nine-month delivery
numbers and the updated delivery outlook for the year reflect the underlying
actions to secure a more efficient delivery flow in the next years as we
progress to rate 63 per month for the A320 Family in 2021. The full-year
free cash flow guidance has been adjusted to reflect the revised delivery
outlook while the EBIT Adjusted target is maintained. We are focused on
meeting our customer commitments and preparing the production system for the
future."
Gross commercial aircraft orders totalled 303 (9m 2018: 311 aircraft),
including 20 A330neos and 22 A350 XWBs in the third quarter alone, with net
orders of 127 aircraft (9m 2018: 256 aircraft). The order book stood at
7,133 commercial aircraft as of 30 September 2019. Net helicopter orders of
173 units (9m 2018: 230 units) included 12 H135s in the third quarter.
Airbus Defence and Space's order intake by value totalled EUR 6.1 billion,
with third quarter bookings supported by key contract wins in Space Systems.
Consolidated *revenues *increased to EUR 46.2 billion (9m 2018: EUR 40.4
billion), mainly driven by higher deliveries, a favourable mix and foreign
exchange rate development. A total of 571 commercial aircraft were delivered
(9m 2018: 503 aircraft), comprising 33 A220s, 422 A320 Family, 34 A330s, 77
A350s and 5 A380s. Airbus Helicopters delivered 209 units (9m 2018: 218
units) with its stable revenues supported by growth in services and reduced
by programme phasing. In September, the 1,000th Super Puma helicopter was
delivered. Higher revenues at Airbus Defence and Space were mainly driven 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 - increased to EUR 4,133
million (9m 2018: EUR 2,738 million), mainly reflecting the commercial
aircraft performance at Airbus.
Airbus' EBIT Adjusted increased sharply to EUR 3,833 million (9m 2018: EUR
2,340 million), largely driven by the A320 ramp-up and NEO premium, progress
on the A350 financial performance and foreign exchange improvement which
already materialised in H1 2019.
On the A320 programme, NEO aircraft represented 338 out of the total 422
deliveries. The production ramp-up continued for the Airbus Cabin Flex (ACF)
version of the A321, which remains challenging. The ACF programme will
further ramp up in Q4 2019 with efforts continuing throughout 2020 to
improve the industrial maturity of the programme. Airbus also continues to
study different options to increase the share of the A321 in current A320
Family production capacity. The ramp-up of the A330neo continued and
represented 26 of the total 34 A330 deliveries over the nine-month period.
Airbus continued to make good progress on A350 recurring cost convergence
with the programme on track to reach the breakeven target for the year.
Airbus Helicopters' EBIT Adjusted was stable at EUR 205 million (9m 2018:
EUR 202 million), reflecting an increased contribution from services which
was reduced by a less favourable delivery mix.
EBIT Adjusted at Airbus Defence and Space totalled EUR 355 million (9m 2018:
EUR 409 million), mainly reflecting efforts to support ongoing and future
campaigns. The Division's focus is on performance improvement across its
businesses.
Ten A400M military transport aircraft were delivered, bringing the
in-service fleet to 84 as of 30 September 2019. During the third quarter
several key milestones were achieved towards the aircraft's full capability,
including the successful deployment of 58 paratroopers through a single side
door and 80 simultaneously from both side doors as well as in-flight
refuelling contacts with an H225M helicopter. While the A400M cash
consumption is reducing, it is not at the pace being targeted. Airbus will
continue with development activities towards achieving the revised
capability roadmap. Retrofit activities are progressing in line with the
customer agreed plan. Challenges remain, particularly on exports.
Consolidated *self-financed R&D* *expenses *totalled EUR 2,150 million (9m
2018: EUR 2,103 million).
Consolidated *EBIT*(reported) increased to EUR 3,431 million (9m 2018: EUR
2,683 million), including Adjustments totalling a net EUR -702 million.
These Adjustments comprised:
· A negative EUR -253 million related to the dollar pre-delivery payment
mismatch and balance sheet revaluation;
· A negative EUR -221 million related to the suspension of defence export
licences to Saudi Arabia by the German government, now prolonged to March
2020, of which EUR -13 million were booked in Q3 2019;
· A negative EUR -158 million related to A380 programme cost, of which EUR
-22 million were booked in Q3 2019, as part of Airbus' continuous
assessment of asset recoverability and the quarterly review of onerous
contract provision assumptions;
· A total of EUR -70 million of other costs.
Consolidated reported *earnings per share *of EUR 2.81 (9m 2018: EUR 1.88)
included a negative impact from the financial result, affected by the
recognition of a loss on foreign exchange hedges as a result of the defence
export licence suspension already booked as of Q2 2019. The financial result
was EUR -233 million (9m 2018: EUR -413 million). The effective tax rate
also reflected charges related to the defence export licence suspension, as
well as the reassessment of tax assets and liabilities. Consolidated *net
income(1)* was EUR 2,186 million (9m 2018: EUR 1,453 million).
Consolidated *free cash flow* *before M&A and customer financing *ofEUR
-4,937 million
(9m 2018: EUR -4,169 million) mainly reflected the working capital build to
support future deliveries, including advanced stage aircraft close to
delivery. Consolidated *free cash flow* was EUR -5,127 million (9m 2018: EUR
-3,928 million).
The consolidated *net cash position* was EUR 5.6 billion on 30 September
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
September was EUR 17.8 billion (year-end 2018: EUR 22.2 billion).
In response to developments in the WTO dispute, the United States Trade
Representative (USTR) decided to impose tariffs on Airbus commercial
aircraft imported from the EU into the US from 18 October 2019. The tariffs,
as announced, do not include components delivered to Mobile, US, from
Europe. Airbus is working with its US customers to manage the consequences
of these tariffs. The potential decision of the EU to impose tariffs on US
products should come at a later stage. Airbus continues to support an
outcome through a negotiated solution(2).
*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 now targets around 860 commercial aircraft deliveries in 2019,
which reflects the updated delivery schedule.
· On that basis:
Airbus maintains its expected increase in EBIT Adjusted of approximately
+15% compared to 2018.
Airbus now expects FCF before M&A and Customer Financing of approximately
EUR 3 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 CET on 30 October, you can listen to the *9m 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 - Nine-Month (9m) Results 2019 *
(Amounts in Euro)
*Airbus Consolidated* *9m 2019* 9m 2018 Change
*Revenues*, in millions *46,168* 40,421 +14%
thereof defence, in millions *6,231* 6,141 +1%
*EBIT Adjusted*, in millions *4,133* 2,738 +51%
*EBIT (reported)*, in millions *3,431* 2,683 +28%
*Research & Development expenses*, *2,150* 2,103 +2%
in millions
*Net Income(1)*, in millions *2,186* 1,453 +50%
*Earnings Per Share (EPS) * *2.81 * 1.88 +49%
*Free Cash Flow (FCF)*, in millions *-5,127* -3,928 -
*Free Cash Flow * *-4,902* -4,342 -
*before M&A*, in millions
*Free Cash Flow before M&A* *-4,937* -4,169 -
*and Customer Financing*, in millions
*Airbus Consolidated* *30 Sept* 31 Dec Change
*2019* 2018
*Net Cash position*, in millions *5,576* 13,281 -58%
*Employees* *135,978* 133,671 +2%
*By *Revenues* *EBIT(reported)*
Business
Segment*
(Amounts in *9m* 9m Change *9m * 9m Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *35,572* 30,478 +17% *3,405* 2,238 +52%
Airbus *3,712* 3,755 -1% *203* 179 +13%
Helicopters
Airbus *7,706* 7,051 +9% *83 * 479 -83%
Defence and
Space
Transversal *-822* -863 - *-260* -213 -
&
Elimination
s
*Total* *46,168* 40,421 +14% *3,431* 2,683 +28%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *9m * 9m Change
*2019* 2018
Airbus *3,833* 2,340 +64%
Airbus Helicopters *205* 202 +1%
Airbus Defence and Space *355* 409 -13%
Transversal & Eliminations *-260* -213 -
*Total* *4,133* 2,738 +51%
*By *Order Intake (net)* *Order Book*
Busine
ss
Segmen
t*
*9m * 9m Change *30 30 Sept Change
*2019* 2018 Sept* 2018
*2019*
Airbus *127* 256 -50% *7,133 7,383 -3%
, in *
units
Airbus *173* 230 -25% *681* 704 -3%
Helico
pters,
in
units
Airbus *6,064* 4,988 +22% N/A N/A N/A
Defenc
e and
Space,
in
millio
ns of
Euro
*Airbus Consolidated - Third Quarter (Q3) Results 2019*
(Amounts in Euro)
*Airbus *Q3 2019* Q3 2018 Change
Consolidated*
*Revenues*, in *15,302* 15,451 -1%
millions
*EBIT Adjusted*, in *1,604* 1,576 +2%
millions
*EBIT (reported)*, *1,338* 1,563 -14%
in millions
*Net Income(1)*, in *989* 957 +3%
millions
*Earnings Per Share *1.27* 1.23 +3%
(EPS)*
*By *Revenues* *EBIT (reported)*
Business
Segment*
(Amounts in *Q3* Q3 Change *Q3* Q3 Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *11,529* 11,932 -3% *1,254* 1,465 -14%
Airbus *1,341* 1,367 -2% *79* 65 +22%
Helicopters
Airbus *2,691* 2,399 +12% *98* 97 +1%
Defence and
Space
Transversal *-259* -247 - *-93* -64 -
&
Elimination
s
*Total* *15,302* 15,451 -1% *1,338* 1,563 -14%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *Q3* Q3 Change
*2019* 2018
Airbus *1,495* 1,473 +1%
Airbus Helicopters *80* 67 +19%
Airbus Defence and Space *122* 100 +22%
Transversal & Eliminations *-93* -64 -
*Total* *1,604* 1,576 +2%
*Q3 2019 revenues* were stable as lower commercial aircraft deliveries were
compensated by favourable foreign exchange rates and higher revenues at
Airbus Defence and Space.
*Q3 2019 EBIT Adjusted *was stable as lower commercial aircraft deliveries
were compensated by the transition to the NEO and progress on the A350 XWB
programme.
*Q3 2019 EBIT (reported) *decreased by 14%. This reflected Net Adjustments
of EUR -266 million booked in the quarter. Net Adjustments in the third
quarter of 2018 amounted to EUR -13 million.
*Q3 2019 Net Income *was stable, reflecting the lower EBIT (reported) and
offset by an improved financial result and a lower effective tax rate.
*EBIT (reported) / EBIT Adjusted Reconciliation*
The table below reconciles EBIT (reported) with EBIT Adjusted.
*Airbus Consolidated* *9m 2019*
(Amounts in millions of Euro)
*EBIT (reported)* *3,431*
*thereof:*
$ PDP mismatch/Balance Sheet revaluation *-253*
Defence export ban *-221*
A380 programme cost *-158*
Others *-70*
*EBIT Adjusted* *4,133*
*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. *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.
*2. *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
nine-month period ended 30 September 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.
30-Oct-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: 900167
End of Announcement DGAP News Service
900167 30-Oct-2019 CET/CEST
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(END) Dow Jones Newswires
October 30, 2019 01:30 ET (05:30 GMT)
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