Record Airbus orders boosted EADS’s business and saw it posting the “best results ever” in 2005, according to co-chief executives Thomas Enders and Noel Forgeard. The company is forecasting further growth in sales and orders for the coming year.
“EADS achieved its best results ever and will push for further growth as a global leader in the industry. Looking forward, we intend to further strengthen EADS’ profitability and expand in tomorrow’s growth markets.”
EADS posted earnings before interest and tax (EBIT) of €2.85 billion ($3.4 billion) on full-year revenues of €34.2 billion, 8% higher than the previous year. The group’s order book was 37% higher as of the end of December 2005, at €253.2 billion, of which €92.6 billion were new orders and €52.4 billion came from the defence sector.
The group reported earnings per share of €1.75, and forecasts a range of €2.35-55 for 2006.
Airbus delivered 378 aircraft in 2005, compared with 320 the year before and saw a “record” gross order intake of 1,111 aircraft. Revenues at the division rose to €22.2 billion, compared with €20.2 billion in 2004. The aircraft manufacturer’s Route 06 cost-cutting programme delivered cumulative savings “as planned” of €400 million by the end of 2005.
The group is forecasting an increase in Airbus deliveries by more than 10% as compared with 2005 for the coming year. EADS is setting itself an EBIT target of between €3.2 billion and €3.4 billion on revenues above €37 billion. “The cyclical upturn is lifting our earnings, and we believe the record order book and vibrant customer demand point to sustained high deliveries at Airbus,” say Enders and Forgeard.
Elsewhere, Eurocopter saw its revenues rise 15.3% to €3.2 billion, with an EBIT of €212 million, delivering 334 aircraft, nearly 20% more than the previous year.
Profitability at Eurocopter, and at our combined defence and space businesses is also on a clear upward trend. We must, however, remain mindful of the challenges ahead: the weak dollar, the revived competition in the commercial aircraft arena, the ramp-up of new programmes, and stretched resources.”
The group’s military transport aircraft (MTA) division posted EBIT of €48 billion, compared with €26 billion the year before, but a €0.5 billion revenue recognition shifted to the first quarter of 2006 put its full-year revenues at €763 million, compared with €1.3 billion in 2004. EADS cites Chilean, Malaysian and South African successes with the A400M as well as its agreement to team with Northrop Grumman for the US tanker competition, and its preferred bidder status in the UK as highlights for the division.
Defence and security systems revenues grew 5% to €5.6 billion.
In the space sector, the company says profit recovery is “on track.” The division saw revenues of €2.7 billion, compared with €2.6 billion in 2004, and EBIT of €58 million, compared with €9 million a year earlier.
In the group’s other businesses, the “surging turboprop market” helped the company’s stake in ATR offset the impact from losses at its Sogerma unit. EADS has set a break-even target of 2007 for the division, which saw its loss widen by €198 million because of “operational losses, impairment of assets and restructuring,” in 2005.
HELEN MASSY-BERESFORD / PARIS
Source: Flight International
