Amsterdam, 18 March 2002
EADS European Aeronautic Defence and Space Company (stock exchange symbol: EAD) outperformed all its financial targets in 2001. Revenues growth of 27% exceeded the 20% goal and 21% growth of EBIT (Earnings before interest and taxes, pre-goodwill amortization and exceptionals) surpassed the 15% target. Free Cash Flow was around EUR 0.8 billion and the value-added through synergies contributed more than EUR 100 million to EBIT, exceeding the 2001 target of EUR 60 million, as the world's second largest aerospace and defence company announced in Amsterdam on Monday.
The EADS CEOs, Philippe Camus and Rainer Hertrich, said: "We are proud that EADS outperformed its financial targets for 2001. We were able to enter 2002 with solid financials, and we have taken decisive actions to preserve cash and profits in a challenging business environment. EADS remains very strong and we assign ourselves the task to again deliver in 2002 at least what we promise, despite remaining market uncertainties."
EBIT return on revenues amounted to 5.5% in 2001, compared to 5.8% in 2000, due, as expected, to the increase in self-financed Research and Development (R&D), mostly dedicated to the continuation of the A380 programme and to the final phase of the A340-500/-600 development.
Before expenses for self-financed R&D, EADS has reached an EBIT margin of 12.1%, up from 11.3% in 2000.
For 2002, due to the difficult business environment, EADS expects revenues to decrease by about two percent at constant US-Dollar exchange rates. The decrease, which is mainly due to lower deliveries at Airbus (with 300 aircraft targeted in 2002, as a result of 11 September, after 325 delivered in 2001) will be partly offset by higher contributions from non-Airbus businesses.
Additional steps have been taken to maintain in 2002 the pre-R&D EBIT margin at the 2001 level of around 12%. This target includes improved performance in the Space and the Defence and Civil Systems Divisions, additional value creation from synergies (EUR 300 million targeted for 2002, compared to more than EUR 100 million achieved in 2001) and additional company-wide cost savings plans.
EADS plans an increase in R&D costs of about EUR 0.4 billion, mainly due to the A380 programme. By taking into account this R&D increase, the lower delivery rates of Airbus, and the assessment of market risks, while at the same time initiating further actions to reduce costs, EADS expects a 2002 EBIT of about EUR 1.2 billion.
The EADS CEOs stated: "We have set a prudent target for 2002 EBIT that fully takes into account current market uncertainties. Our sound economic position and our unparalleled order book enable us to respond to these uncertainties. Our restructuring efforts in Space and Defence and Civil Systems will start to pay off in 2002. A top priority is continued growth in our defence businesses, from revenues of EUR 6.1 billion in 2001 to over EUR 9 billion in 2004."
"Much of this revenue growth is already in EADS' order book through new defence programmes such as Eurofighter, the NH90 and Tiger helicopters, the new generation of missile systems as well as the military transport aircraft CN-235/C-295, and we expect the EUR 18 billion A400M contract signed in December 2001 to be enforced this year," the CEOs continued. "Several programmes are entering the delivery phase, resulting in fast EBIT growth in our defence businesses."
Free cash flow before the cash impact of customer financing is expected to remain positive, confirming the ability of EADS to self-finance the A380 project. Management has implemented a tight control of customer financing (including off-balance sheet commitments), that allows Airbus to prudently support its customers on a case-by-case basis, without jeopardising the financial soundness of EADS.
EADS expects order intake to be again significantly higher than revenues in 2002, including the A400M project expected to be definitively booked this year. The order book is expected to grow beyond EUR 190 billion in the current year, with the defence related order book doubling to about EUR 40 billion.
Dividend proposal of EUR 0.50 per share
The EADS Board of Directors will propose a dividend of EUR 0.50 per share for the business year 2001. This is the same dividend as for 2000 and represents a total volume of about EUR 400 million. This proposal will be submitted to the Shareholders' vote at the Annual General Meeting in Amsterdam on 17 May, 2002.
The EADS Chief Financial Officer, Axel Arendt, commented, "Our dividend proposal reflects EADS' strong commercial successes in 2001. It is also based on our continuous financial strength despite the market challenges, and namely our sound cash situation. To intensify our focus on the management of cash, we have introduced a new metrics 'CVA - Cash Value Added' as a key performance measure."
Highlights of the year 2001
In 2001, EADS again achieved major successes:
As reported on 6 February, EADS has achieved substantial growth in 2001:
Net income, including a positive exceptional result from the creation of Airbus SAS and MBDA, turned positive in 2001 and reached EUR 1.4 billion after a net loss of EUR -0.9 billion in 2000. Pre-goodwill amortization and exceptionals, net income is EUR 936 million, compared to a net loss of EUR -45 million in 2000. Earnings per share pre-goodwill amortization and exceptionals reached EUR 1.16, compared to EUR -0.06 in 2000.
The net cash position remained on a high positive level and stood over EUR 1.5 billion at year end, confirming the financial strength of the group (end of 2000: EUR 2.1 billion, excluding the impact of the Airbus 100% consolidation). The continuing positive free cash flow generation in the volume of EUR 774 million confirms EADS' capacity to self-finance the Research & Development costs of the A380 programme.
The Airbus Division EBIT reached EUR 1,655 million (100% of Airbus consolidated), compared to EUR 1,412 million in 2000 (with consolidation of EADS contribution, representing 80% stake in Airbus). The 274 net orders received in 2001 represent a 50.2% worldwide market share in terms of aircraft numbers and even a 61% net market share in value terms. Based on recent customer feedback, Airbus is confident to deliver 300 aircraft in 2002 (-8% from 325 aircraft delivered in 2001).
The Military Transport Aircraft Division achieved the turnaround in 2001, sooner than planned, with a positive EBIT of EUR 1 million, following a negative EBIT of EUR -63 million in the previous year. With EUR 18 billion, the expected A400M contract will be the largest defence project for EADS since its creation and will generate exceptional growth for the division with around EUR 2 billion of revenues to be generated already between 2002 and 2004.
The Aeronautics Division EBIT increased by 4% to EUR 308 million (2000: EUR 296 million). The EBIT margin maintained at 6%, thus demonstrating the underlying strength of the business. The order book of 789 helicopters supports the outstanding prospects of Eurocopter in both the civilian and the military businesses. The production ramp up of the Eurofighter will now contribute significantly to cash and EBIT. The EBIT of ATR, the regional aircraft manufacturer, turned positive in 2001, following the creation of ATR integrated company.
The Space Division recorded a negative EBIT of EUR -222 million, including high non-recurring expenses mainly for restructuring and investments depreciation, compared to EUR 67 million in 2000. Market competition remains strong, but large new accomplishments such as the EUR 3.3 billion Paradigm military communication satellite project for the UK Ministry of Defence and the latest successes of the Ariane launchers show the Division's commercial strength. Moreover, a new management is now in place at Astrium to implement the restructuring and proceed with the reorganisation in two integrated businesses of launchers and satellites; this will allow to improve the efficiency of the Division.
The Defence and Civil Systems Division reduced its EBIT loss from EUR -110 million in 2000 to EUR -79 million in 2001, including high non-recurring expenses for ongoing restructuring and pre-contract cost. As announced, Defence and Civil Systems was able to achieve the turnaround during the second half of 2001, with a positive EBIT of EUR 49 million for this period. Further strong EBIT growth is expected thanks to the successful restructuring and product programmes entering the delivery phase.
EADS European Aeronautic Defence and Space Company is the largest European aerospace company and the No 2 worldwide. The company has a workforce of 102,967 (end of 2001). It is active in the sectors of commercial aircraft, helicopters, space, military transport and combat aircraft as well as defence technology and services. Among others, EADS holds 80 percent of Airbus, 75 percent of the space company Astrium, 100 percent of the helicopter manufacturer Eurocopter, 43 percent in the Eurofighter programme and 37.5 percent in the missile company MBDA.
Contact:
Eckhard Zanger
EADS Communications Finance
Tel. +49 89 607 27961
EADS - Figures for 2001
(Amounts in Euro)
| EADS Group | 2001 |
2000 pro forma | Change | |
| Revenues, in millions | 30,798 | 24,208 | +27% | |
| EBITDA,(1) in millions | 3,213 | 2,334 | +38% | |
| EBIT,(2) in millions | 1,694 | 1,399 | +21% | |
| Net income, in millions | 1,372 | -909 | - | |
|
Net income pre-goodwill amortization and exceptionals, in millions | 936 | -45 | - | |
| EPS pre-goodwill amortization and exceptionals | 1.16 | -0.06 | - | |
| Net Cash position, in millions | 1,533 | 2,143 | -28% | |
| Dividend per share | 0.50(3) | 0.50 | - | |
| Order intake, in millions | 60,208 | 49,079 | +23% | |
| Order book, in millions | 183,256 | 131,874 | +39% | |
| Employees (at year-end) | 102,967 | 88,879 | +16% |
| Airbus 100% consolidated from 2001 onwards | |
| 1) | Earnings before interest, taxes, depreciation and amortization |
| 2) | Earnings before interest and taxes, pre-goodwill amortization and exceptionals |
| 3) | proposed to AGM on 17 May, 2002 |
| 4) | Order intake and order book based on gross prices |
| by Division | EBIT(1) | Revenues | ||||
| (Amounts in millions of Euro) | 2001 |
2000 pro forma | Change | 2001 |
2000 pro forma | Change |
| Airbus | 1,655 | 1,412 | 17% | 20,549 | 14,856 | 38% |
| Military Transport Aircraft | 1 | -63 | - | 547 | 316 | 73% |
| Aeronautics | 308 | 296 | 4% | 5,065 | 4,704 | 8% |
| Space | -222 | 67 | - | 2,439 | 2,535 | -4% |
| Defence & Civil Systems | -79 | -110 | - | 3,345 | 2,909 | 15% |
| Eliminations & Headquarters | 31 | -203 | - | -1,147 | -1,112 | - |
| Total | 1,694 | 1,399 | 21% | 30,798 | 24,208 | 27% |
| Airbus 100% consolidated from 2001 onwards | |
| 1) | Earnings before interest, taxes, depreciation and amortization |
| 2) | Earnings before interest and taxes, pre-goodwill amortization and exceptionals |
| 3) | proposed to AGM on 17 May, 2002 |
| 4) | Order intake and order book based on gross prices |
| by Division | Order Intake | Order Book | ||||
| (Amounts in millions of Euro) | 2001 |
2000 pro forma | Change | 2001 |
2000 pro forma | Change |
| Airbus(4) | 50,279 | 34,158 | 47% | 156,075 | 104,387 | 50% |
| Military Transport Aircraft | 993 | 493 | 101% | 1,320 | 873 | 51% |
| Aeronautics | 5,315 | 8,322 | -36% | 13,722 | 13,067 | 5% |
| Space | 1,333 | 3,024 | -56% | 3,796 | 4,826 | -21% |
| Defence & Civil Systems | 3,081 | 3,857 | -20% | 9,094 | 9,722 | -6% |
| Eliminations & Headquarters | -793 | -775 | - | -751 | -1,001 | - |
| Total | 60,208 | 49,079 | 23% | 183,256 | 131,874 | 39% |
| Airbus 100% consolidated from 2001 onwards | |
| 1) | Earnings before interest, taxes, depreciation and amortization |
| 2) | Earnings before interest and taxes, pre-goodwill amortization and exceptionals |
| 3) | proposed to AGM on 17 May, 2002 |
| 4) | Order intake and order book based on gross prices |
