PARIS - Airbus Group reported nine month 2016 revenues of €42.7 billion ($46.7 billion) compared to nine month 2015 revenues of €43.0 billion ($47 billion). Net income for the nine-month period was €1.81 billion down 5 percent from €1.9 billion for the same period a year ago.
"As expected the nine month performance reflects the heavily back-loaded aircraft delivery schedule, ongoing production ramp-up and transition to new versions of our A320 and A330 aircraft," said Tom Enders, Airbus Group Chief Executive Officer. "For the remaining months of the year we remain totally focused on deliveries to achieve our earnings and cash guidance. The commercial environment continues to be rather healthy, with a backlog of more than 6,700 aircraft supporting our production plans and reflecting the strength of the product portfolio. Further integration of the group, as recently decided, will simplify the company’s governance and improve competitiveness."
Group order intake in the first nine months of 2016 was €73.2 billion (9m 2015: €111.9 billion), with the order book value totaling €986 billion as of 30 September 2016 (year-end 2015: €1,006 billion).
INDUSTRY SEGMENTS
Commercial Aircraft
Commercial Aircraft reported nine month 2016 revenues of €31.5 million (9m 2015: €31.1 billion). Revenues at Commercial Aircraft reflected higher A350 and A320 volumes but lower A330s and were supported by the more favorable US dollar environment. In all, 462 commercial aircraft were delivered (9m 2015: 446 aircraft). Despite increased deliveries of 258 (9m 2015: 237 units).
Commercial Aircraft’s EBIT before one-off was €1,838 million (9m 2015: €2,226 million), driven by the lower A330 rate, delivery profile, transition pricing on A330 and A320, and higher ramp-up costs, while research and development (R&D) costs decreased.
On the A350 program, 26 aircraft were delivered over the nine month period with 14 in the third quarter alone. Good progress was made over the summer in terms of risk management to bring down the level of outstanding work in the final assembly line. Difficulties remain in the supply chain with work continuing on recurring cost convergence during the ramp-up. The company remains focused on these short-term challenges as it works towards achieving the A350 delivery target. A total of 24 A320neos were delivered from January to end September with the first CFM-engined aircraft delivered in the third quarter. The early teething problems with the Pratt & Whitney (P&W) engine are now largely over but P&W is facing some industrial ramp-up challenges which puts more pressure on the back-loading of the delivery profile. Firm commitments have been received from both engine suppliers to meet the NEO schedule and the airframes are well on track for on-time delivery to customers.
Helicopters
Helicopters’ revenues declined three percent to €4.28 billion (9m 2015: €4.42 billion), reflecting a higher proportion of light helicopters and lower commercial flight hours in services.
In Helicopters, EBIT before one-off was €200 million (9m 2015: €241 million), burdened by an unfavorable mix and lower commercial flight hours in services as well as the H225 accident in Norway and some campaign costs. However, the underlying profit at Helicopters continues to be supported by ongoing transformation measures and efforts to adapt to market challenges.
Airbus Defence and Space
Airbus Defence and Space’s revenues declined eight percent to €7.71 billion (9m 2015: €8.38 billion), reflecting the negative impact of the perimeter change from portfolio reshaping of around €-450 million but were broadly stable on a comparable basis. Eleven A400M military transport aircraft were delivered in the nine month period.
Defence and Space’s EBIT before one-off was €440 million (9m 2015: €431 million) after the perimeter change from portfolio reshaping. On a comparable perimeter, EBIT before one-off benefited from a better contract mix and risk reduction and restructuring efforts that have been implemented in the Division.
On the A400M, progress is being made on the industrial side in terms of capability development and program governance although the overall program situation remains challenging. The fleet has now completed 10,000 in-service flight hours. Commercial negotiations with OCCAR and the Nations are yet to take place with regard to the revised delivery schedule and its implications. As of today, the outcome of these negotiations cannot be reliably estimated.
You have 0 item(s) in your cart