EADS Half-Year Results Confirm 2003 Targets.Business Editors AMSTERDAM, Netherlands--(BUSINESS WIRE)--July 28, 2003 EADS EADS European Aeronautic Defence and Space Company N.V. EADS Expeditionary Air Defense System (USMC) EADS Extended Air Defense Systems EADS Environmental Assessment Data System EADS Echelons Above Division Study (stock exchange symbol:EAD EAD Ensino A Distancia (Brazil) EAD Encoded Archival Description (DTD for SGML) EAD Employment Authorization Document (US INS) EAD Exposure At Default ), the world's second largest aerospace and defence company, achieved half-year results fully in line with its expectations and confirmed its 2003 targets. Earnings Before Interest and Taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). , pre-goodwill and exceptionals) reached EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 592 million (first half 2002: EUR 775 million). In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the guidance provided to the markets, earnings compared to the first half year 2002 were influenced by Research and Development (R&D) expenditure at Airbus, up by EUR 221 million mainly for the A380, fewer Airbus deliveries (149 compared to 160 aircraft) and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. at the Space Division of EUR 88 million. In the first half of 2002, the disposal of the EADS share in the company Aircelle had a positive EBIT effect of EUR 63 million. During the first six months of 2003, all EADS divisions except Space improved their EBIT margin before R&D compared to the same period last year. "The EADS half-year results confirm our outlook for the full year," the EADS CEOs Philippe Camus and Rainer Hertrich Rainer Hertrich is one of the two current CEOs of EADS, and also head of the group's Aeronautics Division. He was born December 6th 1949 and studied business administration at the Technical University of Berlin and the University of Nuremberg after an apprenticeship at said in a statement. "And so, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite recent world events, we continue to deliver what we have promised, knowing that genuine business risks still characterise Verb 1. characterise - be characteristic of; "What characterizes a Venetian painting?" characterize differentiate, distinguish, mark - be a distinctive feature, attribute, or trait; sometimes in a very positive sense; "His modesty distinguishes him from his aerospace markets in the short term. We remain vigilant. Our continued focus on profitability and containing costs across our businesses as well as limiting financial exposure is the foundation for our confidence." "Based on our strong order intake and our recent market successes, we should be well positioned once our markets pick up again to deliver strong growth in cash and overall financial performance," the CEOs continued. "This relates not only to the civil aviation business, where we see very early signs of a recovery on the horizon, but also to the excellent growth prospects of our reorganised Adj. 1. reorganised - organized again; "a reorganized business" reorganized organized - formed into a structured or coherent whole Defence and Security Systems division. At Space, we are on track to achieve a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in 2004. The new organisation and the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of Space, along with our prime contractorship for the Ariane system and new large-scale programmes such as Galileo, have been major breakthroughs helping to secure the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability of our Space activities." EADS expects the full-year 2003 EBIT to remain in the same range as 2002, based on 300 aircraft deliveries by Airbus. During the first six months, Airbus has already delivered 149 aircraft in a very difficult market environment. The results were presented by EADS at a press conference in London on Monday. The UK is one of the home countries of EADS, with 13,000 highly skilled employees and revenues of EUR 2.5 billion in the full year 2002, of which about 25% are from the defence businesses. The existing orderbook of more than EUR 17 billion with UK customers at the end of June 2003 supports a fast growing business in the UK. Further growth opportunities include the EUR 3 billion Skynet 5 military satellite communications system In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. , where the contract nears agreement, the selection of EADS/MBDA for the initial assessment phase for the new UK Ground Based Air Defence (GBAD GBAD Ground Based Air Defense GBAD Ground-Based Attitude Determination GBAD Gerard Butler After Dark (website) ) programme, and the AirTanker bid to meet the Royal Air Force's future air refuelling re·fu·el v. re·fu·eled also re·fu·elled, re·fu·el·ing also re·fu·el·ling, re·fu·els also re·fu·els v.tr. To supply again with fuel. v.intr. requirements. Defence growth in order intake, revenues and earnings EADS revenues in the first six months of 2003 decreased by 7% to EUR 13.1 billion (first half 2002: EUR 14 billion). At constant EUR/US$ exchange rates revenues would have remained on the same level; the impact of lower Airbus deliveries has been offset by a better mix of delivered aircraft, by the first-time 100% consolidation of Astrium (EUR 163 million impact) and by the ramp-up of defence programmes. However, EADS expects to maintain 2003 full year revenues in the same range as 2002 (EUR 29.9 billion), applying a lower average exchange rate of 1 EUR = 1.10 US$. This is because the expected decrease in Airbus revenues should be compensated for by growth in other divisions such as Defence and Security Systems. EADS' defence and public safety businesses, which are mainly part of the Defence and Security Systems and the Aeronautics aeronautics: see aerodynamics; airplane; aviation. Divisions, are subject to strong seasonal influences. Typically, revenues and earnings are significantly stronger in the second half of the year. This is again expected to be the case in 2003. The order intake grew strongly as a result of the recent market successes of both the commercial aircraft and the defence businesses, reaching EUR 43.2 billion in the first half of 2003. This is almost three times the comparable figure in the first half of 2002 of EUR 14.8 billion. The order book also increased to EUR 187.7 billion at the end of June, with about EUR 42 billion of defence contracts including the EUR 20 billion A400M contract. The strong orderbook confirms the competitiveness of EADS' products and services and provides a strong basis for sustained growth of future Cash Flow and improved financial performance. Major market successes were the Airbus orders from JetBlue Airways For the Jet Blue database used in Exchange Server and Active Directory, see Extensible Storage Engine. JetBlue Airways is a major American low-cost airline owned by JetBlue Airways Corporation (NASDAQ: JBLU). of 65 aircraft and the Emirates Airlines “Emirates” redirects here. For other uses, see Emirates (disambiguation). Emirates Airline (shortened form: Emirates) (Arabic: طيران الإماراتTayarān al-Imārāt order of 41 aircraft (including 21 A380s). Achievements in the Space businesses included the EUR 3 billion agreement on 30 Ariane launchers and the positive decision on the Galileo programme. EADS is consistently delivering the results of its strategic focus on the defence business with new programme wins such as the A400M military transport aircraft programme and the initial success of GBAD in the UK. EADS expects to continue to grow the defence business in the second half of 2003 by securing the Austrian Eurofighter order, the Skynet 5 project and other ongoing campaigns. The Net Cash position remained strongly positive at EUR 914 million. Free Cash Flow before gross customer financing improved to EUR 305 million (first half 2002: EUR 221 million). The EADS gross customer financing exposure increased minimally by EUR 262 million - almost completely from Airbus - over the first half 2003, leading to EUR 4.0 billion. Taking into account a conservative value for the collateral asset, EADS' net exposure is only EUR 1.6 billion, which is fully covered by provisions, in line with the company's conservative accounting policy. EADS is expecting more additions in the second half, well below the budget provided for the year. Net Income pre-goodwill and exceptionals reached EUR 231 million by June 2003, compared to EUR 462 million in the first half of 2002. Earnings per share pre-goodwill and exceptionals amounted to EUR 0.29 (first half 2002: EUR 0.57). As usual for EADS, Net Income was significantly affected by non-cash amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. of goodwill, amounting to EUR 281 million in the first half year. Net Income after goodwill and exceptionals amounted to EUR -66 million in the first six months of 2003. At the end of June 2003, EADS had 107,845 employees. This was an increase of 4% compared to the end of December 2002, mainly due to the ramp-up of the A380 programme and the first-time full consolidation of EADS Astrium. Divisional results The divisional breakdown now reflects the new structure of the Defence and Security Systems and the Aeronautics divisions. In the first half year, the Airbus EBIT of EUR 621 million (same period 2002: 874 million) was impacted by higher R&D costs, amounting to EUR 901 million, compared to EUR 680 million in the first six months of 2002. The EBIT pre-R&D remained stable at about EUR 1.5 billion. Revenues of EUR 8,773 million (first half 2002: EUR 9,870 million) were lower due to fewer aircraft deliveries and the weaker US-Dollar versus the Euro. Currently, earnings are basically not impacted by the exchange rate situation, due to the extensive hedging of EADS. The part of revenues, which is naturally hedged by Dollar-denominated costs, is however recorded at US$ market rates and therefore reduced by a weaker Dollar. From January to June 2003, Airbus delivered 149 aircraft (same period 2002: 160), half of the expected 300 deliveries for the full year 2003. In total, Airbus received 199 orders during the first six months of 2003 compared to 107 in the same period last year. This is a major achievement given the continuing difficulties faced by many airlines, resulting in a net market share in terms of value of 66%. The Airbus order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. amounted to a total of 1,531 commercial aircraft (A400M not included) at the end of June, twelve more than at the same time last year. The Military Transport Aircraft division recorded an EBIT of EUR -8 million (first half of 2002: EUR -72 million, affected by a EUR 54 million non-recurring charge following the insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet of Fairchild Dornier). Revenues increased to EUR 268 million (first half of 2002: EUR 234 million), thanks to the military derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. business, but they do not yet include A400M revenues. In addition, the seasonal effects of the defence business will lead to a much stronger performance in the second half of the year. Thanks to the signing of the A400M contract, the division's orderbook leapt leapt v. A past tense and a past participle of leap. to EUR 20.5 billion. At the Aeronautics division, EBIT reached EUR 59 million (first six months 2002 pro-forma figure: EUR 29 million). The result no longer includes the Military Aircraft business, which is now part of the Defence and Security Systems division. At EUR 1,613 million, revenues remained on the same level (first half of 2002 on a pro-forma basis: EUR 1,606 million). EBIT and revenues are very much driven by Eurocopter, which usually shows stronger performance in the second half of the year. The Space division's EBIT of EUR -131 million (first half of 2002: EUR -85 million) continued to be impacted by the weak markets. EBIT reflected mostly a restructuring charge of EUR 88 million as part of the restructuring announced in March 2003. Order intake reached EUR 779 million in the first half year. Revenues of EUR 1,008 million (first six months 2002: EUR 882 million) include, like all Space division figures, for the first time in 2003 the 100% consolidation of Astrium. The new Defence and Security Systems division now concentrates Missiles Systems, Defence Electronics, Military Aircraft, Defence and Communications Systems and Services under one roof. The division recorded an EBIT of EUR -28 million, compared to EUR -37 million in the first half of 2002 on a pro-forma basis. Revenues grew slightly to EUR 1,902 million (first half 2002 on a pro-forma basis: EUR 1,856 million). Growth in revenues and EBIT is being driven by the ramp-up of defence programmes such as Eurofighter, Aster and Storm Shadow missiles, and will as usual further accelerate in the second half of the year. Highlights Second Quarter 2003: -- The American low-cost carrier A low-cost carrier or low-cost airline (also known as a no-frills or discount carrier / airline) is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. JetBlue Airways placed an order for 65 Airbus A320, plus options for an additional 50 A320s in April 2003. -- At the Paris Air Show The Paris Air Show (Salon International de l'Aéronautique et de l'Espace, Paris-Le Bourget) is an international trade fair for the aerospace business. It is held at Le Bourget airport near Paris, France every odd year, alternating both with the Farnborough International in June 2003, Emirates Airlines announced an order for 41 aircraft, including 21 A380s and 20 A340s, Korean Air  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . signed an MoU to acquire up to eight Airbus A380, including three options, and Qatar Airways Qatar Airways (Arabic: القطرية) is an airline based in Doha, Qatar. It operates a hub and spoke network based in Doha, linking 81 international destinations. announced its intention to place an order of 32 aircraft (mainly A330s), including 14 options. -- EADS launched the Airbus A400M This article contains information about a scheduled or anticipated . It may contain preliminary or speculative information, and may not reflect the final version of the aircraft. military transport aircraft worth EUR 20 billion. The contract was signed on 27 May 2003 in Bonn, Germany. -- EADS acquisition of BAE Systems BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. 25% stake in Astrium was approved by the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community in May. -- The ESA 1. (architecture) ESA - Enterprise Systems Architecture. 2. (body) ESA - European Space Agency. countries agreed on a financing plan for the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. satellite navigation system satellite navigation system satellite n → système m de navigation par satellite Galileo on 26 May 2003. ESA also agreed the plan to ensure an independent European launcher business and to finance the work required to get the Ariane 5 ten tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. version launcher back on track. Finally, EADS was designated as prime contractor for the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and manufacturing of Ariane. -- Arianespace commited at the Paris Air Show to order 30 Ariane launchers worth EUR 3 billion from EADS as prime contractor. -- New structure of EADS Space became effective as of 17 June 2003. Three main businesses: EADS Astrium (satellites), EADS Space Transportation (launch vehicles This is a list of space launch vehicles sorted by country/operator in alphabetical order, commercial vehicles are listed under their corresponding country.
Brazil
Mathematical expression, called a wave function, that describes properties characteristic of no more than two electrons near an atomic nucleus or molecule. An orbital can be considered a three-dimensional region in which there is a 95% probability of finding an infrastructure) and EADS Space Services (satellite services). -- New organisational structure of the EADS defence activities: The new Defence & Security Systems division has started its operations on 1 July 2003. By leveraging the strength of an integrated defence portfolio with around 24,000 employees and annual revenues of approximately EUR 5 billion, EADS is strengthening its defence business to even better meet the needs of customers requiring integrated defence and security technology solutions. -- The UK Ministry of Defence announced on 26 June that an EADS/MBDA team has been selected as one of two teams awarded a contract worth EUR 38 million for the initial assessment phase of a new integrated air defence and control system for the UK armed forces GBAD (Ground Base Air Defence) Programme. -- Eurofighter received four-nation type acceptance on 30 June 2003. Formal deliveries have now started. -- Decision of Austrian Parliament in favour of Eurofighter. The first of 18 aircraft on order are expected to be delivered in 2007.
EADS - First Half-Year Results (H1) 2003
(Amounts in Euro)
EADS Group H1 2003 H1 2002 Change
-------------------------------------------- ---------- ------- ------
Revenues, in millions 13,060 13,974 -7%
-------------------------------------------- ---------- ------- ------
EBITDA(1), in millions 1,292 1,501 -14%
-------------------------------------------- ---------- ------- ------
EBIT(2), in millions 592 775 -24%
-------------------------------------------- ---------- ------- ------
Net Income, in millions -66 91 -
-------------------------------------------- ---------- ------- ------
Net Income pre-goodwill amortization
and exceptionals, in millions 231 462 -50%
-------------------------------------------- ---------- ------- ------
Earnings Per Share (EPS)
pre-goodwill amortization and exceptionals 0.29 0.57 -50%
-------------------------------------------- ---------- ------- ------
Order Intake, in millions 43,190 14,791 +192%
-------------------------------------------- ---------- ------- ------
30 June 31 Dec. Change
2003 2002
-------------------------------------------- ---------- ------- ------
Order Book, in millions 187,741 168,339 +12%
-------------------------------------------- ---------- ------- ------
Net Cash position, in millions 914 1,224 -25%
-------------------------------------------- ---------- ------- ------
Employees 107,845 103,967 +4%
-------------------------------------------- ---------- ------- ------
by Division EBIT(2) Revenues
------------------ ----------------------
(Amounts in millions of H1 H1 Change H1 2003 H1 2002 Change
Euro) 2003 2002
---------------------------- ----- ----- ------ ------- ------- ------
Airbus 621 874 -29% 8,773 9,870 -11%
---------------------------- ----- ----- ------ ------- ------- ------
Military Transport Aircraft -8 -72 +89% 268 234 +15%
---------------------------- ----- ----- ------ ------- ------- ------
Aeronautics(3) 59 29 +103% 1,613 1,606 0%
---------------------------- ----- ----- ------ ------- ------- ------
Space(4) -131 -85 -54% 1,008 882 +14%
---------------------------- ----- ----- ------ ------- ------- ------
Defence and Security
Systems(3) -28 -37 +24% 1,902 1,856 +2%
---------------------------- ----- ----- ------ ------- ------- ------
Headquarters Consolidation 79 66 - -504 -474 -
---------------------------- ----- ----- ------ ------- ------- ------
Total 592 775 -24% 13,060 13,974 -7%
---------------------------- ----- ----- ------ ------- ------- ------
by Division Order Intake Order Book
(Amounts in ----------------------- ------------------------------
millions of H1 2003 H1 2002 Change 30-06- 31-12- Change
Euro) 2003 2002
--------------- -------- ------- ------ ----------- ----------- ------
Airbus(5), (6) 33,174 10,334 +221% 154,428 140,996 +10%
--------------- -------- ------- ------ ----------- ----------- ------
Military
Transport
Aircraft 20,104 214 +9294% 20,476 633 +3135%
--------------- -------- ------- ------ ----------- ----------- ------
Aeronautics(3) 1,440 1,982 -27% 9,828 10,162 -3%
--------------- -------- ------- ------ ----------- ----------- ------
Space 779 569 +37% 4,248 3,895 +9%
--------------- -------- ------- ------ ----------- ----------- ------
Defence and
Security
Systems(3) 1,988 1,918 +4% 13,342 13,406 0%
--------------- -------- ------- ------ ----------- ----------- ------
Headquarters
Consolidation
(6) -14,295 -226 - -14,581 -753 -
--------------- -------- ------- ------ ----------- ----------- ------
Total 43,190 14,791 +192% 187,741 168,339 +12%
--------------- -------- ------- ------ ----------- ----------- ------
1) Earnings before interest, taxes, depreciation, amortization and
exceptionals
2) Earnings before interest and taxes, pre-goodwill amortization and
exceptionals
3) 2002 figures are pro-forma according to the new structure of
Aeronautics and Defence and Security Systems
4) Half-year 2003 includes EADS Astrium at 100% (Half-year 2002 at
75%)
5) Order Intake and Order Book based on catalogue prices
6) Half-year 2003: thereof EUR 13.7 billion for A400M
About EADS: EADS is the second largest aerospace and defence company in the world with revenues of EUR 29.9 billion in the year 2002 and a workforce of more than 100,000. It is a systems integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and as such is one of the few companies worldwide capable of combining various products and technologies to form complete systems and offering the associated services. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and the joint venture MBDA MBDA Minority Business Development Agency (US Department of Commerce) MBDA Michigan Broadband Development Authority MBDA Minnesota Band Directors Association MBDA Matra BAE Dynamics Alenia MBDA Magnolia Ballroom Dancers' Association , the second largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo. EADS has over 70 sites in France, Germany, Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. and Spain and is active in many regions worldwide, amongst them America, Russia and Asia. |
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