DGAP-Adhoc: European Aeronautic Defence and Space Company

European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Quarter Results 14.11.2013 07:00 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc release, 14 November 2013 EADS Reports Improved Nine-Month (9m) Results 2013 - Revenues increase 7 percent to EUR 40.0 billion - EBIT* before one-off rises 22 percent to EUR 2.3 billion - Net Income rises 36 percent to EUR 1.2 billion - Aircraft order, delivery guidance raised to reflect market demand - Free Cash Flow 2013 guidance adjusted to EUR -1.5 billion - EBIT* before one-off target reaffirmed at EUR 3.5 billion for 2013 EADS (stock exchange symbol: EAD) reported higher revenues and profits for the first nine months of 2013, driven by the strong momentum within its commercial aircraft activities. Order intake(4) more than doubled to EUR 138.2 billion with the order book value reaching EUR 642.5 billion at the end of September. The Net Cash position was EUR 5.2 billion on 30 September, 2013. 'We achieved a good improvement in revenues and profitability over the first nine months thanks largely to our civil aircraft business,' said EADS CEO Tom Enders. 'However, we have significant challenges ahead of us, particularly with respect to cash generation and to the A350 XWB programme, which has entered the next critical phase. I am pleased with the progress made in the reorganisation of the Group's defence and space businesses into the new Airbus Defence and Space Division and we will provide a further update on this before the end of the year.' Over the first nine months of 2013, EADS' revenues increased 7 percent to EUR 40.0 billion (9m 2012: EUR 37.3 billion), reflecting the aircraft delivery pattern at Airbus Commercial and increasing activity at Airbus Military (A400M). Revenues were broadly stable at Eurocopter, Astrium and Cassidian. EBIT* before one-off - an indicator capturing the underlying business margin by excluding material non-recurring charges or profits caused by movements in provisions related to programmes and restructurings or foreign exchange impacts - increased to EUR 2.3 billion (9m 2012: EUR 1.9 billion) for EADS and to EUR 1.7 billion for Airbus (9m 2012: EUR 1.2 billion). This improvement reflected the solid operational performance at Airbus Commercial. The Group EBIT* before one-off margin was 5.8 percent. EADS' reported EBIT* increased to EUR 2.1 billion (9m 2012: EUR 1.6 billion). One-off charges were limited to the known impact related to the A380 wing rib feet issue and the pre-delivery payment (PDP) dollar mismatch and balance sheet revaluation at Airbus. The finance result was EUR -445 million (9m 2012: EUR -337 million) while net income(3) increased to EUR 1,195 million (9m 2012: EUR 880 milliona), or earnings per share of EUR 1.50 (earnings per share 9m 2012: EUR 1.08a). Self-financed Research & Development (R&D) expenses increased slightly to EUR 2,179 million (9m 2012: EUR 2,145 million). Free Cash Flow before acquisitions amounted to EUR -4,815 million (9m 2012: EUR -3,235 million), reflecting the working capital evolution linked to delivery phasing, industrial ramp-up, some customer financing activity and the seasonality of the group's government business. Capital expenditure of EUR 2.1 billion was mainly driven by progress on A350 XWB development aircraft and includes development costs capitalised under IAS 38 of EUR 196 million for the A350 XWB. EADS finished the first nine months of 2013 with a Net Cash position of EUR 5.2 billion (year-end 2012: EUR 12.3 billion) after taking into account the EUR 1.9 billion used to fund the share buyback programme and the 2012 dividend payment of EUR 468 million. The gross cash balance on 30 September was EUR 12.5 billion, providing financial flexibility and security. EADS' order intake(4) rose sharply to EUR 138.2 billion (9m 2012: EUR 50.4 billion), as the strong commercial momentum continued into the third quarter, particularly at Airbus. Eurocopter saw some recovery in commercial bookings in the third quarter while Astrium reported significant order momentum. By the end of September 2013, the total order book(4) had risen in value to EUR 642.5 billion (year-end 2012: EUR 566.5 billion). The defence order book amounted to EUR 47.7 billion (year-end 2012: EUR 49.6 billion). As of 30 September 2013, EADS had 144,156 employees (year-end 2012: 140,405). Outlook As the basis for its 2013 guidance, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions. Based on the nine month results, EADS has made several adjustments to its full year guidance. In 2013, gross commercial aircraft orders should be above 1,200 aircraft. Airbus deliveries are expected to be up to 620 commercial aircraft. Due to lower A380 deliveries and assuming an exchange rate of EUR 1 = $ 1.35, EADS revenues should see moderate growth in 2013. By stretching the 2012 underlying margin improvement, in 2013 EADS targets an EBIT* before one-off of EUR 3.5 billion and an EPS* before one-off of around EUR 2.50 (FY 2012: EUR 2.24), prior to the share buyback. Excluding the wing rib feet A380 impact of around EUR 85 million in 2013 based on 25 deliveries, going forward, from today's point-of-view, the 'one-offs' should be limited to potential charges on the A350 XWB programme, foreign exchange effects linked to the PDP mismatch and balance sheet revaluation. The A350 XWB programme remains challenging. Any schedule change could lead to an increasingly higher impact on provisions. An assessment of the need for potential one-off costs from the creation of Airbus Defence and Space will be conducted in the fourth quarter of 2013. Free Cash Flow after customer financing and before acquisitions is now expected to be negative at around EUR -1.5 billion. This reflects the company's investment into production ramp-up and development programmes as well as recent government customer budgetary constraints. * EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term 'exceptionals' refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon. a. Certain nine-month 2012 and year-end 2012 figures have been restated to reflect the change to pension accounting under IAS 19 while Airbus' figures also reflect the inclusion of ATR and Sogerma within Airbus Commercial. ATR and Sogerma were formerly included in Other Businesses. About EADS EADS is a global leader in aerospace, defence and related services. In 2012, the Group - comprising Airbus, Astrium, Cassidian and Eurocopter - generated revenues of EUR 56.5 billion and employed a workforce of over 140,000. Contacts: Martin Agüera +49 175 227 4369 Rod Stone +33 630 521 993 Matthieu Duvelleroy +33 629 431 564 Gregor v. Kursell +49 89 607 34255 www.eads.com EADS - Nine-Month (9m) Results 2013 (Amounts in euro) <pre> EADS Group 9m 2013 9m 2012 Change Revenues, in millions 39,966 37,258 +7% thereof defence, in millions 7,714 7,355 +5% EBITDA (1), in millions 3,485 2,906a +20% EBIT (2), in millions 2,146 1,583a +36% Research & Development expenses, 2,179 2,145 +2% in millions Net Income (3), in millions 1,195 880a +36% Earnings Per Share (EPS) (3) 1.50 1.08a +39% Free Cash Flow (FCF), in millions -4,830 -3,376 - Free Cash Flow -4,815 -3,235 - before Acquisitions, in millions Free Cash Flow -4,412 -3,279 - before Customer Financing, in millions Order Intake (4), in millions 138,172 50,409 +174% EADS Group 30 Sept 31 Dec Change 2013 2012 Order Book (4), in millions 642,463 566,493 +13% thereof defence, in millions 47,705 49,570 -4% Net Cash position, in millions 5,244 12,292 -57% Employees 144,156 140,405 +3% </pre> <pre> by Division Revenues EBIT (2) (Amounts in millions of Euro) 9m 9m Change 9m 9m Change 2013 2012 2013 2012 Airbus Division (5) 28,770 26,051a +10% 1,502 844a +78% Airbus Commercial 27,552 25,155a +10% 1,521 823a +85% Airbus Military 1,769 1,194 +48% 8 8 0% Eurocopter 4,132 4,116 0% 217 275a -21% Astrium 4,014 3,934 +2% 205 190a +8% Cassidian 3,498 3,484 0% 153 145a +6% Headquarters / -744 -788a - 73 137a -47% Consolidation Other Businesses 296 461a -36% -4 -8a - Total 39,966 37,258 +7% 2,146 1,583a +36% by Division Order Intake (4) Order Book (4) (Amounts in millions of Euro) 9m 9m Change 30 Sept 31 Dec Change 2013 2012 2013 2012 Airbus Division (5) 127,062 40,909a +211% 602,284 525,482a +15% Airbus Commercial 126,410 39,359a +221% 582,691 505,333a +15% Airbus Military 815 1,691 -52% 20,229 21,139 -4% Eurocopter 4,177 3,586 +16% 12,986 12,942 0% Astrium 4,250 2,866 +48% 12,895 12,734 +1% Cassidian 2,953 3,406 -13% 14,808 15,611 -5% Headquarters / -466 -618a - -893 -770a - Consolidation Other Businesses 196 260a -25% 383 494a -22% Total 138,172 50,409 +174% 642,463 566,493 +13% EADS - Third Quarter Results (Q3) 2013 EADS Group Q3 2013 Q3 2012 Change Revenues, in millions 13,634 12,324 +11% EBIT (2), in millions 663 526a +26% Net Income (3), in millions 436 301a +45% Earnings Per Share (EPS) (3) 0.55 0.37a +49% </pre> <pre> by Division Revenues EBIT (2) (Amounts in millions of Euro) Q3 Q3 Change Q3 Q3 Change 2013 2012 2013 2012 Airbus Division (5) 9,846 8,526a +15% 409 281a +46% Airbus Commercial 9,317 8,291a +12% 429 265a +62% Airbus Military 702 351 +100% -2 6 -133% Eurocopter 1,548 1,345 +15% 89 77a +16% Astrium 1,206 1,273 -5% 82 61 +34% Cassidian 1,212 1,298 -7% 67 64a +5% Headquarters / -269 -248a - 22 45a -51% Consolidation Other Businesses 91 130a -30% -6 -2a - Total 13,634 12,324 +11% 663 526a +26% </pre> 14.11.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: European Aeronautic Defence and Space Company EADS N.V. P.O. Box 32008 2303 DA Leiden Netherlands Phone: 00 800 00 02 2002 Fax: +49 (0)89 607 - 26481 E-mail: ir@eads.net Internet: www.eads.com ISIN: NL0000235190 WKN: 938914 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------