AMSTERDAM - The Airbus Group reported stable first quarter 2016 revenues of EUR12.2 billion, up slightly from revenues of EUR12.1 billion in the first quarter of 2015. Net income was EUR399 million for the quarter, down about 50 percent from net income of EUR792 million in the year ago period.
"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 programs and on the change-over to the new engine versions of the A320 and A330. On the military side, we are now facing a serious challenge for production and customer deliveries of the A400M due to new, unexpected issues on the engine propeller gearbox. It’s very frustrating but we’ll have to work through this with our engine partners. So, in a nutshell, despite these challenges we maintain our 2016 guidance and also our earnings and cash growth story for the coming years based on our strong commercial order backlog and the robust, well-resourced production ramp-ups underway."
Group order intake in the quarter was EUR7.2 billion (Q1 2015: EUR21 billion), with the order book value totalling EUR957 billion as of 31 March 2016 (year-end 2015: EUR1,006 billion).
INDUSTRY SEGMENTS
Commercial Aircraft
Despite lower deliveries of 125 aircraft (Q1 2015: 134 aircraft), revenues of EUR8.67 billion (Q1 2015: EUR8.57 billion were stable at Commercial Aircraft supported by the strengthening average U.S. dollar rate. Commercial Aircraft’s EBIT before one-off totalled EUR407 million (Q1 2015: EUR569 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.
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.
Helicopters
Helicopters’ revenues declined 10 percent to EUR1.16 billion (Q1 2015: EUR1.28 billion), reflecting lower deliveries of 56 units (Q1 2015: 62 units) and an unfavorable mix. Helicopters’ EBIT before one-off declined to EUR33 million (Q1 2015: EUR52 million), mainly reflecting lower volumes and an unfavorable mix.
Airbus Helicopters received 51 net orders (Q1 2015: 86 units), including 38 Ecureuil light rotorcraft.
Airbus Defence and Space
Defence and Space reported that revneues fell three percent to EUR2,53 billion (Q1 2015: EUR2.60 billion). Defence and Space’s EBIT before one-off increased 21 percent to EUR109 million (Q1 2015: EUR90 million), supported by program execution, portfolio focusing and efficiency measures.
Order intake by value rose five percent at Airbus Defence and Space, driven mainly by earth observation satellites and defense contracts.
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