Airbus Group has reported robust first quarter 2015 results with improved cash flow and confirmed its full year guidance.
“We had a good start into 2015, with a solid operational performance and improved cash generation, further supported by asset sales,” said Tom Enders, Airbus Group Chief Executive Officer. “We are on track to achieve our full year targets due to both the continued focus on programme management and the implementation of our core strategy. We will review capital allocation towards the end of the year as we progress on the A350 ramp up, A320 transition and our divestments, while the order book provides a strong platform for future growth.”
Group order intake in the quarter was € 21 billion (Q1 2014: € 21 billion), with the order book value rising to € 955 billion as of 31 March 2015 (year-end 2014: € 858 billion) taking into account a positive revaluation linked to the strengthening of the US dollar.
Airbus received 101 net commercial aircraft orders in the quarter (Q1 2014: 103 net orders), including 34 A330 Family aircraft. Airbus Helicopters received 86 net orders (Q1 2014: 78 units), including 49 H145s and 19 H175s, while in April the H225M Caracal was preselected by Poland for the test phase of its multi-role military helicopter tender. Order intake by value at Airbus Defence and Space rose 16 percent, with good momentum seen for military aircraft including seven light and medium transport aircraft.
Group revenues totalled €12.1 billion (Q1 2014: €12.6 billion), mainly reflecting the phasing of deliveries at Commercial Aircraft which are expected to be back-loaded in 2015, especially for the A350 XWB and A380. A total of 134 commercial airplanes were delivered (Q1 2014: 141 units), including one A350 XWB and four A380s.
Commercial Aircraft’s revenues totalled €8.6 billion with favourable foreign exchange mitigating the lower delivery volume. Helicopters’ revenues of €1.3 billion reflect the ramp-up in government programmes with total deliveries of 62 units (Q1 2014: 74 units).
Commercial Aircraft’s EBIT before one-off increased to €569 million (Q1 2014: €527 million), driven by operational improvement and favourable cost phasing including research and development (R&D) expenses. Helicopters’ EBIT before one-off decreased slightly to € 52 million (Q1 2014: € 58 million), due to a less favourable revenue mix but was supported by the Division’s transformation plan.
Group self-financed R&D expenses totalled €701 million (Q1 2014: €727 million) while the Group EBIT before one-off return on sales was 5.4% (Q1 2014: 5.5%).
Airbus states that the production ramp-up on the A350 XWB programme is ongoing, with the second aircraft delivered to Qatar Airways as planned. The A320neo programme remains on schedule, with the initial aircraft equipped with CFM engines rolled out earlier this month. The A380 programme is on track to reach breakeven this year. The new H160 was unveiled in the quarter as part of Helicopters’ product renewal strategy.
Net income increased by 80% to €792 million (Q1 2014: €439 million), while earnings per share (EPS) rose by the same amount to €1.01 (Q1 2014: €0.56). The finance result was €-366 million (Q1 2014: €-107 million) and included negative one-offs of €229 million from foreign exchange revaluation linked to the weakening of the euro.
As the basis for its 2015 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions. Airbus deliveries should be slightly higher than in 2014, and the commercial aircraft order book is again expected to grow.