EADS Reports Half-Year 2010 Results
Net Cash at € 8.9 billion remains key asset
EADS’ (stock exchange symbol: EAD) macro-economic and commercial
environment continues to improve while challenges remain, particularly
in the institutional sector. Revenues stood at € 20.3 billion. The EBIT*
before one-off of € 0.6 billion benefited from good performance in
Airbus legacy programmes and other business activities. EADS’ EBIT*
amounted to € 406 million after exceptional foreign exchange effects.
The order intake of € 30.8 billion mirrors the improved momentum in
commercial aviation. EADS’ order book of more than € 454 billion
provides a solid platform for future deliveries. The Group’s Net Cash
position of € 8.9 billion remains a key asset.
“Berlin and
Farnborough Air Show orders reflect an improvement in the commercial
aviation market. I am particularly glad to see the return of aircraft
lessors. However, the institutional outlook is more challenging as
public budgets in our domestic markets are under tight review”, said
Louis Gallois, CEO of EADS. “Our key priorities remain clear: improving
efficiency on the A380 production, developing the A350 and finalising
the A400M contract amendment with the Customer Nations. I want to add
that we have submitted our bid for the U.S. Air Force tanker programme
and that we will fight hard to win the competition again.”
In the first six months, EADS’ revenues
remained stable at € 20.3 billion (H1 2009: € 20.2 billion). Deliveries
at Airbus Commercial (250 units) and Eurocopter (249 helicopters)
remained roughly stable at a high level.
The percentage of
completion methodology was resumed on the A400M programme. In the second
quarter, based on the allocation of internal milestones, around € 300
million in revenues were booked on the programme. Customer Nations and
EADS continue working towards a contract amendment. In the meantime, the
A400M flight test programme is progressing better than expected;
however, the development of the Flight Management System is on the
critical path, with more challenges than expected. Risk mitigation
actions are being undertaken. Management assumptions of March 2010
underpinning the A400M provision calculation remain valid. As previously
indicated, reassessment of these assumptions could have a significant
impact on future results.
Source: www.eads.com
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