Airbus Group reports Q1 2016 results

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By admin April 28, 2016 21:03

Airbus Group reports Q1 2016 results

Airbus Group has reported first quarter 2016 results and maintained its guidance for the full year.

“2016 turns out to be the challenging year we anticipated. Overall, we expect a stable financial performance but deliveries, cash and earnings will be heavily loaded towards the end of the year. And that already shows in our first quarter performance,” said Tom Enders, Airbus Group Chief Executive Officer. “Operationally, we continue to focus on the production ramp-ups of our Airbus A350 and A320 programmes and on the change-over to the new engine versions of the A320 and A330.”

Group order intake in the quarter was € 7.2 billion (Q1 2015: € 21 billion), with the order book value totalling € 957 billion as of 31 March 2016 (year-end 2015: € 1,006 billion).

Airbus received 10 net commercial aircraft orders (Q1 2015: 101 net orders) with gross orders of 32 aircraft including 14 A330neos and two A380s for Emirates Airline. Fourteen of the 22 cancellations in the quarter were CEO (current engine option) to NEO (new engine option) conversions for the A320 and A330.
Group revenues were stable at €12.2 billion (Q1 2015: € 12.1 billion). Despite lower deliveries of 125 aircraft (Q1 2015: 134 aircraft), revenues were stable at Commercial Aircraft supported by the strengthening average U.S. dollar rate.

Group EBIT before one-off was € 501 million (Q1 2015: € 651 million). Commercial Aircraft’s EBIT before one-off totalled € 407 million (Q1 2015: € 569 million), driven mainly by the back-loaded profile of deliveries and A330 rate adjustment but partly compensated by lower research and development (R&D) costs.

Group self-financed R&D expenses declined to €547 million (Q1 2015: € 701 million).

The A350 XWB ramp-up is progressing with the focus on bottlenecks in the supply chain, reducing outstanding work and controlling recurring costs. This is increasingly challenging, says Airbus. The target for a monthly production rate of 10 A350s by the end of 2018 remains unchanged.

Five A320neos were delivered in the first quarter to two customers. Pratt & Whitney is committed to supplying new engines for aircraft delivery from the summer of 2016. The engines are expected to be delivered to the right level of maturity to enable the NEO ramp-up in the second half of 2016. Overall, the A320 ramp-up preparation continues despite temporary supply chain challenges that are expected to be recovered by year-end, confirms Airbus.

Commenting on the recent SFO investigation, Airbus said that in the context of its internal compliance improvement programme, it had discovered “certain mistakes and omissions relating to information provided in respect to consultants and other third parties in applications for export credit financing for Airbus customers and as a result has informed the relevant U.K.
authorities. Some Export Credit Agency (ECA) financing has been temporarily suspended. The Group is cooperating with the relevant ECAs to resolve this issue as soon as possible and hopes to obtain financing or refinancing in the near future.”

As the basis for its 2016 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions.

admin
By admin April 28, 2016 21:03