Airbus Group reported first quarter 2014 results reflecting the company’s continued focus on programme execution and achieving its operational milestones.
Group order intake was € 21.1 billion (Q1 2013: € 49.5 billion), with the order book value amounting to € 683.2 billion on 31 March, 2014 (year-end 2013: € 680.6 billion).
Airbus received 103 net commercial aircraft orders (Q1 2013: 410 net orders), including 20 A380s for Amedeo. Order intake at Airbus Helicopters rose 50 percent and was broadly stable at Airbus Defence and Space, with good momentum seen in the Space Systems business.
“The Group made further progress in the opening quarter of 2014, with improved revenues and earnings per share,” said Airbus Group CEO Tom Enders. “We confirm our guidance; however there are still many challenges ahead for the rest of the year. A strong focus remains on programme execution and the implementation of our various improvement and restructuring plans.”
Revenues increased five percent to € 12.6 billion (Q1 2013: € 12.1 billion), with all three divisions contributing positively and Airbus Helicopters showing a double-digit increase as deliveries rose to 74 units (Q1 2013: 58 units). Airbus revenues increased as a more favourable delivery mix, including two additional A380s compared to a year earlier, offset the overall reduction in volume to 141 commercial aircraft deliveries (Q1 2013: 144 deliveries).
Group EBIT before one-off was € 700 million (Q1 2013: € 734 million) and € 527 million for Airbus (Q1 2013: € 608 million). The EBIT before one-off at Airbus reflected operational improvement but was weighed down by a more frontloaded research and development (R&D) expense profile and A350 XWB support costs.
Airbus states that the A350 XWB programme is progressing towards certification, with four of the five development aircraft now flying and over 1,600 flight test hours accumulated. The first two customer aircraft are now in the assembly line with certification targeted for the third quarter and entry-into-service by the end of 2014. On the maturing A380 programme, as six year maintenance checks have started Airbus is acting on the lessons learnt from tests and in-service experience. At the same time, progress is being made towards achieving the 2015 breakeven objective. Within Airbus Helicopters, the industrial ramp-up preparation is underway on the EC175 programme with entry-into-service targeted in the fourth quarter of 2014.
As the basis for its 2014 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions. In 2014, Airbus deliveries should be about the same level as in 2013, including the first A350 XWB delivery. Gross commercial aircraft orders should be above the level of deliveries. Assuming an exchange rate of € 1 = $ 1.35, Airbus Group revenues should be stable compared to 2013.