EADS Reports First Quarter EBIT Increase to EUR 315 million
Amsterdam, 17 May 2002
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Revenues up 2% to EUR 6.4 billion
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Order intake of EUR 3.8 billion in the first quarter 2002
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CEOs: "We have met expectations for the first quarter of 2002, and confirm our year-end forecast."
EADS (stock exchange symbol: EAD), the world's second largest aerospace and defence company, achieved first quarter 2002 results which are in line with the company's full year forecast. EBIT (Earnings before interest and taxes, pre-goodwill amortization and exceptionals) increased by 2% to EUR 315 million (first quarter 2001: EUR 310 million), as EADS reported on Friday on the occasion of its second Annual General Shareholders Meeting in Amsterdam. Revenues were up by 2% to reach EUR 6.4 billion (first quarter 2001: EUR 6.3 billion).
Order intake reached EUR 3.8 billion in the first three months of 2002. While order intake grew in the Aeronautics and Defence and Civil Systems Divisions, it was significantly down at Airbus due to the difficult business environment for airlines following 11 September.
From January to March 2001, EADS order intake had been considerably higher with EUR 18.9 billion thanks to very strong Airbus orders in that period. The commercial order situation in the first quarter of 2002 was not directly comparable to the same period in 2001, where airlines were still placing large orders. Net Airbus orders during the first quarter 2002 were 15 aircraft. Initial signs of commercial market recovery were evident in April with Airbus reporting 22 orders during that single month. Additionally, four major airlines have recently announced their intention to order a total of more than 100 Airbus aircraft in the near future.
The EADS order book was up by EUR 10 billion compared to the first quarter of 2001, but decreased slightly from EUR 183.3 billion at year-end 2001 to EUR 179.5 billion at the end of March 2002.
EADS, like the overall aerospace industry, is subject to strong seasonal influences in its lines of business. Generally, in all EADS divisions but Airbus, revenues and earnings are significantly stronger in the second half of the year.
EADS CEOs, Philippe Camus and Rainer Hertrich, said: "EADS is successfully managing the fluctuations in the aerospace market. We have met expectations for the first quarter of 2002, and are able to confirm our forecast for the full year. With air traffic picking up, we see initial signs of commercial aviation recovery."
EADS reported net income pre-goodwill and exceptionals of EUR 139 million, or EUR 0.17 per share, for the first quarter of 2002, compared with EUR 114 million, or EUR 0.14 per share, for the same period last year.
EADS also reported that its net cash position increased by 7% to EUR 1.6 billion in the first quarter of 2002 compared to EUR 1.5 billion at year-end 2001. Free cash flow was EUR 94 million in the first three months of 2002 (first quarter 2001: EUR 232 million).
Divisional revenues and earnings remain on last year's level
Despite a weaker commercial market, first quarter revenues of the Airbus Division remained on the level of the same period last year at EUR 4.6 billion. EBIT reached EUR 396 million (first quarter 2001: EUR 427 million). From January to March 2002, Airbus delivered 72 aircraft, compared with 79 aircraft in the same period last year. As expected, order intake at Airbus was lower, amounting to EUR 1.3 billion as a result of the downturn in the commercial aviation industry (first quarter 2001: EUR 16.9 billion).
Revenues at the Military Transport Aircraft Division rose from EUR 70 million in the first quarter 2001 to EUR 101 million in the same period of 2002. EBIT remained the same with EUR -12 million. Order intake grew slightly from EUR 55 to EUR 61 million.
The Aeronautics Division achieved revenues of EUR 936 million in the first quarter 2002 (first quarter 2001: EUR 883 million). EBIT of EUR 16 million remained on the level of last year's first quarter (EUR 19 million). Primarily driven by defence orders at Eurocopter for NH90 and Tiger helicopters, order intake rose from EUR 995 million to EUR 1,458 million in the first quarter comparison.
The Space Division recorded revenues of EUR 426 million in the first quarter 2002, up from EUR 402 million in the same period last year. EBIT was negative at EUR -33 million, as a result of risk provisions and the persistent difficulties in the space market environment. Order intake decreased from EUR 400 million to EUR 316 million.
Revenues for the Defence and Civil Systems Division amounted to EUR 539 million (January to March 2001: EUR 589 million). However, the biggest part of revenues is traditionally recorded towards the end of each calendar year. This is a key factor in negative EBIT of EUR -72 million (first quarter 2001: EUR -87 million). EADS expects the Division to post a positive EBIT in 2002. Order intake increased from EUR 655 to EUR 858 million.
Outlook
EADS confirms the outlook for 2002, stated by the company on 18 March. EADS expects revenues to be maintained close to the level of 2001 and the company forecasts a 2002 EBIT of about EUR 1.2 billion. Order intake is expected to be again significantly higher than 2002 revenues. The order book is expected to grow to more than EUR 190 billion in 2002, with the defence order book doubling to about EUR 40 billion.
EADS European Aeronautic Defence and Space Company is the largest European aerospace company and the No 2 worldwide. The company has a workforce of 102,917 (end of March 2002). It is active in the sectors of commercial aircraft, helicopters, space, military transport and combat aircraft as well as defence technology and services. Among others, EADS holds 80 percent of Airbus, 75 percent of the space company Astrium, 100 percent of the helicopter manufacturer Eurocopter, 43 percent in the Eurofighter programme and 37.5 percent in the missile company MBDA.
EADS - Results First Quarter (Q1) 2002
| EADS Group | Q1 2002 | Q1 2001 | Change |
| Revenues, in millions EUR | 6,408 | 6,276 | +2% |
| EBITDA(1), in millions EUR | 687 | 693 | -1% |
| EBIT(2), in millions EUR | 315 | 310 | +2% |
| Net Income, in millions EUR | -25 | 1,673 | - |
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Net Income pre-goodwill amortization and exceptionals, in millions EUR | 139 | 114 | +22% |
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EPS pre-goodwill amortization and exceptionals | 0.17 | 0.14 | +21% |
| Order intake, in millions EUR | 3,807 | 18,864 | -80% |
| 31-03-2002 | 31-12-2001 | ||
| Order book, in millions EUR | 179,544 | 183,256 | -2% |
| Net Cash position, in millions EUR | 1,643 | 1,533 | +7% |
| Employees | 102,917 | 102,967 | 0% |
| by Division | EBIT(2) | Revenues | ||||
| (Amounts in millions of Euro) | Q1 2002 | Q1 2001 | Change | Q1 2002 | Q1 2001 | Change |
| Airbus | 396 | 427 | -7% | 4,646 | 4,600 | +1% |
| Military Transport Aircraft | -12 | -12 | 0% | 101 | 70 | +44% |
| Aeronautics | 16 | 19 | -16% | 936 | 883 | +6% |
| Space | -33 | 2 | - | 426 | 402 | +6% |
| Defence & Civil Systems | -72 | -87 | +17% | 539 | 589 | -8% |
| Eliminations & Headquarters | 20 | -39 | +151% | -240 | -268 | +10% |
| Total | 315 | 310 | +2% | 6,408 | 6,276 | +2% |
| by Division |
Order Intake |
Order Book | ||||
| (Amounts in millions of Euro) | Q1 2002 | Q1 2001 | Change | 31-03-2002 | 31-12-2001 | Change |
| Airbus(3) | 1,261 | 16,902 | -93% | 151,794 | 156,075 | -3% |
| Military Transport Aircraft | 61 | 55 | +11% | 1,295 | 1,320 | -2% |
| Aeronautics | 1,458 | 995 | +47% | 14,239 | 13,722 | +4% |
| Space | 316 | 400 | -21% | 3,683 | 3,796 | -3% |
| Defence & Civil Systems | 858 | 655 | +31% | 9,210 | 9,094 | +1% |
| Eliminations & Headquarters | -147 | -143 | -3% | -677 | -751 | +10% |
| Total | 3,807 | 18,864 | -80% | 179,544 | 183,256 | -2% |
1) Earnings before interest, taxes, depreciation and amortization
2) Earnings before interest and taxes, pre-goodwill amortization and exceptionals
3) Order intake and order book based on gross prices
Contact:
Eckhard Zanger
EADS Communications Finance
Tel. +49 89 607 27961
