EADS's net income halved in the first six months of 2010, dropping to €185 million ($245 million) from €378 million in the same period of 2009, despite revenues remaining stable to total €20.3 billion, compared with €20.2 billion a year ago.
Earnings before interest and tax fell to €406 million from €888 million, affected by "deterioration of hedge rates and higher investment in research and development" as well as "exceptional negative foreign exchange impacts", according to EADS.
The Airbus Commercial division's earnings plummeted by two-thirds to €241 million - reflecting currency effects and investment in the A350 XWB - while its revenues dropped by 2% to €13 billion and deliveries by four units to 250.
Increasing tankers business and medium and light transport aircraft deliveries drove Airbus Military's revenues up by 18%, to just over €1 billion, but currency effects on the A400M provision, combined with "an under-recovery of fixed costs" on that programme, rendered divisional earnings negative to the tune of €161 million. A year ago, the negative figure was €218 million.
Helicopter division Eurocopter boosted its revenues by 11% to €2.1 billion, as its deliveries rose 13 units to 249. However, its earnings dropped from €99 million to €71 million, affected by a restructuring charge related to the implementation of a cost-cutting programme, a charge and margin adjustment pertaining to the NH90, and higher product investment.
Astrium earnings were up 7% at €106 million, although revenues declined 4% to €2.1 billion, with EADS citing a one-time "catch-up effect" that boosted the 2009 figure. Defence & Security's revenues were stable at €2.2 billion, although R&D spending narrowed earnings by 23% to €110 million.
EADS's other businesses generated revenues of €554 million, but zero earnings, with negative currency effects suffered by regional aircraft manufacturer ATR largely responsible for erasing the €2 million earnings generated a year ago. However, ATR's deliveries rose by six units to 27.
The group's overall net cash position declined to €8.9 billion from €9.8 billion, reflecting a contribution to pension funds and free cash outflow of €737 million - including €270 million of customer financing, forecast to total €600 million this year.
EADS expects annual earnings to total €1 billion in 2010, compared with a negative figure of €322 million in 2009. Airbus deliveries are forecast to be similar to those of 2009, totalling "around 500" compared with 498, with Eurocopter's deliveries "slightly below" the 2009 figure of 558 units.
Source: Flight International
