• Revenues of € 42.8 billion – strong deliveries across all businesses
  • EBIT* before one-off in line with guidance: € 2.2 billion despite hedge rate deterioration
  • A400M programme continues – full year charge of € 1.8 billion
  • EBIT* of € -322 million impacted by A400M provision and foreign exchange effects
  • Net loss: € -763 million
  • Net Cash at € 9.8 billion due to better than expected Free Cash Flow including timing benefits from advanced payments
  • Increase of Airbus single aisle production rate in December 2010
  • No dividend payment recommended due to losses

EADS’ (stock exchange symbol: EAD) annual results 2009 demonstrate the Group’s ability to face a challenging macro-economic and commercial environment thanks to proactive management of the order-book and of customer funding sources. It enabled strong deliveries across all businesses. However, earnings are weighed down by provisions for delays on new programmes. Revenues stood stable at € 42.8 billion. The EBIT* before one-off amounted to € 2.2 billion. Foreign exchange effects and the provision booked for the A400M programme in particular have weighed on EADS’ EBIT* of € -322 million. The order intake of € 45.8 billion reflects the significantly weaker commercial momentum in 2009. At the same time, the Group recorded strong defence and institutional business. EADS’ order book of € 389 billion provides a solid platform for future deliveries. The Net Cash position is solid at € 9.8 billion thanks to better than expected Free Cash Flow (see explanations on page 2) and remains a strong asset for the Group.

“In 2009, the commercial business environment was difficult – but we anticipated many of the challenges ahead of us and overcame them. This illustrates the strength EADS has developed over its first ten years,” said EADS CEO Louis Gallois. ”Beyond simply managing the economic downturn, our objective in 2009 was to keep a strong focus on innovation across our portfolio to lay the foundation for the next decade. I deeply appreciate the support of the Customer Nations for the A400M. Thanks to the agreement between the Customer Nations and EADS this programme is now back on track. Although the Group has to take an additional significant provision, this stabilises the programme. Apart from the A400M, we remain fully focused on improved programme management including further ramp-up of the A380, the development of the A350 and the Saudi Border Surveillance programme.”

Revenues of EADS stood at € 42.8 billion (FY 2008: € 43.3 billion), supported by record commercial aircraft deliveries at Airbus (498 units compared to 483 in 2008) but offset by lower revenue recognition in the A400M programme, price deterioration on commercial aircraft deliveries and negative foreign exchange impacts. In addition, revenues at Astrium grew by 12 percent.

EBIT* before one-off – an indicator capturing the underlying business margin by excluding non-recurring charges or profits caused by movements in provisions or foreign exchange impacts – stood at € 2.2 billion (FY 2008: € 3.3 billion). Compared to 2008, higher volumes at Airbus and Power8 savings were more than offset by a degradation of hedge rates, the deterioration of pricing on Airbus commercial deliveries and cost increases. A380 continued to weigh significantly on the underlying performance.
The performance of Single Aisle and Long Range programmes in Airbus as well as in other Divisions remains robust.

The EBIT* of EADS of € -322 million (FY 2008: € 2,830 million) was burdened by A400M and A380 provisions and exceptional negative foreign exchange impacts. In total, exchange rate impacts weighed down 2009 EBIT* by € 2.5 billion compared to 2008.

EADS’ Net Income amounted to € -763 million (FY 2008: € 1,572 million), or earnings per share of € -0.94 (earnings per share FY 2008: € 1.95). The Net Income was weighed down by the deterioration of EBIT*. Self-financed R&D expenses slightly increased to € 2,825 million (FY 2008: € 2,669 million), assigned to spur new technologies and future business.

Exceptionally, due to the significant loss in 2009, the EADS Board of Directors recommends no dividend payment this year.

Free Cash Flow before customer financing of € 991 million (FY 2008: € 2,886 million) exceeded guidance due to successful Cash Flow management. It also benefited from payments of public customers at year-end which were expected in 2010. Net customer financing outflow was lower than expected during 2009 at around € 400 million. Free Cash Flow after customer financing amounted to € 585 million (FY 2008: € 2,559 million). EADS refinanced its € 1 billion Eurobond in August. Investing activities consumed € 1.9 billion, reflecting an increase in capital expenditure as investment ramps up in the A350 programme. The Group’s Net Cash position reached € 9.8 billion (year-end 2008: € 9.2 billion).

The Group’s order intake decreased to € 45.8 billion (FY 2008: € 98.6 billion). The target order intake for commercial aircraft was achieved but as expected falls short of the 2008 level. On 31 December 2009, the order book of EADS stood at a robust € 389.1 billion (year-end 2008: € 400.2 billion) despite the revaluation impact at the closing rate of 1.44 $/€ at the end of December versus 1.39 $/€ at the end of December 2008. This revaluation has led to a reduction of around € 11 billion. The defence order book increased to € 57.3 billion (year-end 2008: € 54.9 billion). This growth was driven by important military contracts in 2009 including Eurofighter Tranche 3a.

At the end of December 2009, EADS had 119,506 employees (year-end 2008: 118,349).

In 2009, EADS continued improving its Group-wide efficiency. Airbus had achieved € 2 billion in Power8 gross savings (different from the net EBIT* impact) compared to the projected cost base by the end of 2009. Smart buying, supply chain streamlining and logistics integration as well as lean manufacturing have made solid contributions to a leaner Airbus.

Power8 plus has now started and contributions will be made from all Divisions. Additional projects at Airbus include redesign implementation in single aisle and long range programmes.

Regarding the Future EADS integration and savings plan, the Group is increasing its target for gross annual savings compared to the projected cost base from € 200 million to € 350 million at the end of 2012. Future EADS aims to simplify, harmonise and integrate support functions in all areas. The savings run through ten project streams from Finance to IT, General Procurement and Facility Management.

The different cost saving initiatives are being consolidated at Division level as they further mature like in Eurocopter where they are captured within the SHAPE programme.

Upon evaluation of the request for proposal for the US Air Force Tanker replacement, Northrop Grumman has decided not to submit a bid to the US Department of Defence for the KC-X program.

As a team, serious concerns were expressed to the US Department of Defence and the US Air Force that the acquisition methodology outlined in the request for proposal (RFP) would heavily weigh the competition in favour of the smaller, less capable Boeing tanker. Northrop’s in-depth analysis of the RFP reaffirmed those concerns and prompted the decision not to bid.

This decision does not diminish EADS’ commitment to the US, or to its service men and women. EADS also remains convinced that the A330 Multi Role Tanker Transport (MRTT) aircraft would deliver added capability, lower risk and best value for both the service men and women and US taxpayer.
It has been flown, tested and proven. The A330 MRTT has been selected over the Boeing tanker in the last five consecutive competitions and will shortly enter service with several US allies.


As EADS enters into 2010, the Group remains fundamentally solid to cope with the improving but still volatile economic environment.

This is based on a resilient, actively managed backlog of 3,488 aircraft in Airbus, 1,303 in Eurocopter and strong backlog in the Space and Defence businesses.

Progressive recovery in traffic and yield especially in emerging markets should first stabilise airline financials before it leads to additional ordering activity.

Based on a number of active campaigns, which should lead to 250-300 new gross orders in 2010 and a stable overbooked backlog on single aisle aircraft, Airbus decided to increase production rate from 34 to 36 aircraft per month on single aisles starting in December 2010 while keeping the long range programme production rates roughly stable at around 8 aircraft per month.

In 2010, Airbus expects to deliver up to the same level of aircraft as in 2009 and new gross orders should range between 250 and 300 aircraft. Eurocopter should deliver around 6 percent less helicopters in 2010 compared to 2009.

Therefore, using € 1 = $1.40 as the average spot rate, EADS revenues should be roughly stable in 2010.

EADS’ EBIT* in 2010 will be around € 1 billion. The deterioration of the hedge rates will weigh by about € -1 billion compared to 2009. A380, while slightly improving, will continue to weigh substantially on the EBIT* before one-off, as in 2009. Cost savings and some improvement in aircraft pricing should contribute positively while weaker helicopter deliveries, some increase in Research & Development (R&D) and cost inflation will weigh on profitability.

Going forward, the EBIT* performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350 programmes in line with the commitments made to its customers.

Provided a sustainable year-end cash inflow of institutional and government business and subject to Pre-Delivery Payment advances for the A400M programme, the Free Cash Flow before customer financing should be break-even. Free Cash Flow after customer financing should be negative due to customer financing cash-outflows of around € 1 billion.

EADS Divisions showed strong delivery performance in 2009

Following the integration of Airbus Military into Airbus, Airbus is now reporting in two segments: Airbus Commercial and Airbus Military. The Airbus Commercial perimeter includes Elbe Flugzeugwerke (EFW) and the completed aerostructures reorganisation, but now excludes the A400M. Airbus Military includes the former Military Transport Aircraft Division as well as all A400M activity. Eliminations are treated at the Division level.
2008 figures have been restated to reflect the changes, except for the Augsburg site transferred from the Defence & Security Division.

Airbus consolidated revenues of € 28,067 million were in line with the previous year (FY 2008 adjusted: € 28,991 million). Airbus’ consolidated EBIT* amounted to € -1,371 million (FY 2008 adjusted: € 1,815 million).

Out of the consolidated Airbus results, Airbus Commercial revenues amounted to € 26,370 million (FY 2008: € 26,524 million). Commercial aircraft deliveries reached a record level of 498 (FY 2008: 483). The positive impact from a higher number of deliveries was offset by price deterioration notably from A330 deliveries resulting from older contract conditions and negative foreign exchange impacts. Airbus Commercial EBIT* decreased significantly to € 386 million compared to € 2,306 million in 2008. EBIT* was weighed down by the A380 provision (€ 240 million) and exceptional exchange rates impacts. Before these exceptionals, the consolidated EBIT* before one-off stood at € 1.1 billion (FY 2008 adjusted: € 2.1 billion).
It benefited from higher volumes, lower programme charges and Power8 savings which were more than offset by negative foreign exchange effects, price deterioration on aircraft delivered and cost increases. As expected, R&D costs increased due to a ramp up in the A350 programme.
A380 continued to weigh significantly on the underlying performance. Beyond the adjustment of the provision, inefficiencies had a negative impact on performance and an adjustment of excess capacity due to the low level of deliveries, weighed on the fourth quarter. These effects weigh on the good underlying performance of the long range and single aisle families.

Airbus Military revenues amounted to € 2,235 million (FY 2008: € 2,759 million). These revenues benefited from an increase in tanker activity and the Medium and Light segment. However, they were more than offset by lower revenue recognition on the A400M programme, where 2008 figures included the initial application of the early stage accounting method **. The ongoing progress of constructive negotiations including the level of details agreed between EADS and the Launch Customer Nations since the fourth quarter 2009 and the successful first flight of the A400M (and its implications for linked programme milestones such as the delivery of the first aircraft) together with a significant higher visibility on total expected production cost enabled EADS to leave the early stage accounting of the A400M programme at the end of December 2009 and to reassess the A400M loss provision within the year-end closing procedures. This reassessment of the A400M loss provision has been determined based on the best estimate of EADS’ management, as the envisaged contract amendments have not been finalised with the Launch Customer Nations. If substantial changes in the reassessment were to occur, EADS’ performance could be significantly impacted.

Airbus Military EBIT* amounted to € -1,754 million (FY 2008: € -493 million), which was mainly weighed down by the impacts of the A400M programme (€ -1.8 billion).

In 2009, Airbus booked 310 new commercial gross orders (271 net orders) despite market uncertainties. Cancellations were limited with only 39 recorded in 2009. Due to proactive backlog management, production rates remained stable and are currently at rate 34 per month for the single aisle and around rate 8 per month for the long range aircraft. Airbus achieved a record level in 2009 with 140 aircraft delivered in the last quarter alone.
Ten A380 were delivered in 2009, including two Wave 2 aircraft. Financing requests were strongly supported by the Export Credit Agencies who provided guarantees for around one third of deliveries. In 2009, Airbus Military booked 18 new gross orders (10 net orders).

The A350 development continued to progress. Airbus has used up some of the previous buffers in the development of the A350 programme.
Airbus keeps the date of the entry into service unchanged.

The first A320 in China rolled off the assembly line in Tianjin in June 2009 with 11 aircraft delivered at the end of 2009. This underlines Airbus’ strategic approach to internationalise its industrial footprint and to create global partnerships outside the Euro-perimeter. In 2009, Airbus’ A330 freighter conducted its maiden flight, adding another member to the A330 Family besides the Multi-Role Tanker Transport (MRTT). This all-new, mid-size freighter will play an important role in the recovering freighter market with a global demand of more than 1,600 aircraft in the foreseeable future.
Airbus Military secured a significant milestone with the first flight of the A400M transport aircraft. Moreover, it confirmed its leading position in the global tanker aircraft business with additional orders from Saudi Arabia, as well as successful conversion work and test flights for the first A330 MRTT aircraft to be delivered to Australia.

As of 31 December 2009, Airbus’ consolidated order book was valued at € 339.7 billion (year-end 2008 adjusted: € 357.8 billion) after the negative foreign exchange revaluation of around € 11 billion based on list prices.

Out of this consolidated Airbus order book, Airbus Commercial accounted for € 320.3 billion (year-end 2008: € 337.2 billion), which equals 3,488 units (year-end 2008: 3,715 aircraft). The Airbus Military order book stood at € 20.7 billion (year-end 2008: € 22.3 billion).

In 2009, revenues for the Eurocopter Division grew by 2 percent to € 4,570 million (FY 2008: € 4,486 million). Deliveries reached 558 helicopters compared to 588 in 2008. A favourable mix in serial activities and an increasing contribution from customer services were counterbalanced by lower governmental and development revenues. The Division’s EBIT* decreased to € 263 million (FY 2008: € 293 million). Positive contributions from services and cost savings initiatives were offset by higher R&D expenses due to strong efforts on innovation and product investments, margin pressure on the NH90 programme and a negative foreign exchange impact. In the challenging economic environment, Eurocopter benefited from its comprehensive civil and military product portfolio and its worldwide presence. In December 2009, Eurocopter performed the maiden flight of the EC-175 civil helicopter on schedule. This helicopter has been developed in cooperation with Chinese partners. The French order of 22 new NH90 Tactical Transport Helicopters and the Brazilian order of 50 EC725 exemplified the strong military business. Furthermore, Eurocopter strengthened its services business by creating new Service Centres in Hong Kong and in Dallas. It also signed significant services contracts with the German Army and the UK Royal Air Force.

Eurocopter’s broad base of customers, markets and services has so far delivered a level of protection against the civil market downturn. However, due to the current financial and economic crisis the trend of bookings over the year showed a significant slowdown with 344 net orders registered versus 715 in 2008. This mainly comes from the small and medium-sized helicopter segments. Cancellations in 2009 amounted to 105 helicopters, mainly in the Private and Corporate segments. However, 2009 was a record year for military helicopters, resulting in an order book value well above the 2008 level. Eurocopter’s order book increased to € 15.1 billion (year-end 2008: € 13.8 billion) for 1,303 helicopters (year-end 2008: 1,515 helicopters). In 2009, Eurocopter launched an internal restructuring programme, called SHAPE, to better face the economic crisis in the civil helicopter market.

Astrium recorded a strong revenue growth (up 12 percent) across all businesses in 2009. Revenues amounted to € 4,799 million (FY 2008: € 4,289 million). The revenues include a positive one-time effect due to a revenue catch-up for in-orbit incentive schemes on commercial telecom satellites. EBIT* improved by 12 percent to € 261 million (FY 2008: € 234 million) which was driven by a ramp-up in productivity in Earth observation satellites and Ariane 5 manufacturing and profitable growth in telecom services. However, this was partially offset by an unfavourable translation effect from the declining British pound against the euro for Paradigm services.

For Astrium, 2009 was a record year in all sectors. In telecommunication satellites, the Division gained one quarter of the worldwide market including an order worth more than € 500 million from SES Astra. Astrium Services Business Unit expanded and evolved; Skynet 5 passed its full operational service milestone, with the UK Ministry of Defence recognising Astrium as its most reliable supplier. Over the course of the year, Astrium delivered seven Ariane 5 launchers and started development of the Ariane 5 ME (Midlife Evolution). At the end of December 2009, the order book for Astrium stood at € 14.7 billion (year-end 2008: € 11.0 billion).

The Defence & Security (DS) Division’s 2009 revenues decreased to € 5,363 million (FY 2008: € 5,668 million) due to the carve out of the Augsburg aerostructures activity into the Airbus segment. 2008 figures have not been restated. Like for like, revenues reflect growth from higher volume of Tranche 2 and export deliveries for Eurofighter as well as Integrated Logistics Support.

EBIT* grew by 10 percent to € 449 million (FY 2008: € 408 million).
A combination of growth and margin improvements on core and export for Military Air Systems and Missile programmes combined with operational improvements offset a ramp up in R&D investments in areas such as radar and Unmanned Aerial Vehicles (UAV) as well as the aerostructures carve out.

In 2009, DS delivered growth in core programmes and secured significant milestones in future high growth areas: The Eurofighter partner nations awarded the Tranche 3a contract for the production of 112 aircraft. DS further maintained its leading position in nationwide security systems by winning the contract to secure the full borders of Saudi Arabia. It advanced its UAV activities by supporting the French Army deployment of the Harfang UAV System in Afghanistan, by completing the Risk Reduction Study for the European Talarion UAV and by successfully testing the Barracuda UAV demonstrator. Further contributions were made through enhancing the Division’s radar portfolio and securing several new contracts in the professional mobile radio (PMR) business. At the end of 2009, the Division’s order book stood at € 18.8 billion (year-end 2008: € 17.0 billion).

Headquarters and Other Businesses (not belonging to any Division)

As of 2009, the composition of Other Businesses differed compared to 2008. Since EADS now holds only a 30 percent minority stake in DAHER Socata, this unit is consolidated at equity within Other Businesses. Also, as of 2009, EADS EFW is consolidated within Airbus accounts. Therefore, Other Businesses now comprise ATR, EADS Sogerma, EADS North America and 30 percent of DAHER Socata at equity.

Revenues of Other Businesses decreased to € 1,096 million (FY 2008 adjusted: € 1,338 million) mainly reflecting changes in the consolidation perimeter. The EBIT* of Other Businesses fell to € 21 million (FY 2008 adjusted: € 43 million). Productivity gains from further progress on Sogerma’s turnaround were offset by negative foreign exchange effects at ATR and a lower EBIT* at EADS North America.

In a context of weak customer financing, ATR’s proactive order book management led to 53 aircraft deliveries in 2009. Net orders reached 26 units for 2009, up from 20 in 2008 as cancellations were lower at 10 for the year. The 2010 production rates have been adjusted downwards by around 10 percent to reflect the current environment. At the end of 2009, ATR’s order book stood at 133 aircraft. In December 2009, the US Army awarded the fifth annual contract for the Light Utility Helicopter to EADS North America. This contract increases the total contract order to 178 aircraft.
On 31 December 2009, the order book of Other Businesses stood at € 2.0 billion (year-end 2008 adjusted: € 3.2 billion). This decrease is mainly due to the change of consolidation of DAHER Socata.


EADS uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.


This accounting method was used by EADS from September 2008 until the end of December 2009 as EADS could neither finally agree with OCCAR on an updated contract scheme for the A400M programme nor reliably assess the related financial implications of the delayed A400M programme. (For more details refer to the “Year 2009 Report, Unaudited Condensed Consolidated, Financial Information of EADS N.V. for the year ended December 31, 2009”).

EADS is a global leader in aerospace, defence and related services. In 2009, the Group - comprising Airbus, Eurocopter, EADS Astrium and EADS Defence & Security – generated revenues of € 42.8 billion and employed a workforce of more than 119,000.


EADS – Full Year (FY) 2009 Results

(Amounts in Euro)

EADS – Fourth Quarter Results (Q4) 2009

(Amounts in Euro)

EBIT* in the fourth quarter 2009 was negatively impacted by the A400M and A380 provisions (which weighed on Airbus Military and Airbus Commercial EBIT* respectively) in addition to the negative impact from foreign exchange. Compared to the fourth quarter 2008, lower deliveries, increasing R&D and a weaker mix weighed on Eurocopter EBIT*. DS revenues decreased due to the Augsburg carve-out but Q4 2009 EBIT* was boosted by operational improvements and growth from core programmes and export.


  1. Earnings before interest, taxes, depreciation, amortisation and exceptionals
  2. Earnings before interest and taxes, pre goodwill impairment and exceptionals
  3. EADS continues to use the term Net Income. It is identical with Profit for the period attributable to equity owners of the parent as defined by IFRS Rules.
  4. Contributions from commercial aircraft activities to EADS Order Intake and Order Book based on list prices.
  5. Following integration of Airbus Military into Airbus, Airbus is now reporting in two segments: Airbus Commercial and Airbus Military. The Airbus Commercial perimeter includes EFW and the completed aerostructures reorganisation but now excludes the A400M. Airbus Military includes the former Military Transport Aircraft Division as well as all A400M activity. Eliminations are treated at the Division level. 2008 figures and the figures for the first three quarters of 2009 have been restated to reflect the changes, except for Augsburg transferred from DS.
  6. As of 2009, the composition of Other Businesses differs compared to 2008. Since EADS is holding only a minority stake in DAHER Socata, this unit is consolidated at equity within EADS accounts. Also as of 2009, EADS EFW is consolidated within Airbus accounts. Therefore, Other Businesses now contains ATR, EADS Sogerma and EADS North America and 30 percent of Daher Socata at equity. Other Businesses is not a stand-alone EADS Division. Other Businesses 2008 accounts have been adjusted by the transfer of EADS EFW to Airbus segment.
  7. Augsburg site’s revenues included in FY 2008 Defence & Security with € 438 million. The respective figure for Q4 2008 revenues amounts to € 157 million. As of 2009, the Augsburg plant is integrated in Premium AEROTEC.
  8. To be proposed to the EADS Annual General Meeting.

Safe Harbour Statement:

Certain statements contained in this press release are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management’s beliefs. These statements reflect the EADS’ views and assumptions as of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
When used in this press release, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “plan to” and “project” are intended to identify forward-looking statements.
This forward looking information is based upon a number of assumptions including without limitation: assumption regarding demand, current and future markets for EADS’ products and services, internal performance, customer financing, customer, supplier and subcontractor performance or contracts negotiations, favourable outcomes of certain pending sales campaigns.
Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on variety of factors including without limitation: general economic and labour conditions, including in particular economic conditions in Europe, North America and Asia, legal, financial and governmental risk related to international transactions, the cyclical nature of some of EADS’ businesses, volatility of the market for certain products and services, product performance risks, collective bargaining labour disputes, factors that result in significant and prolonged disruption to air travel world wide, the outcome of political and legal processes, including uncertainty regarding government funding of certain programs, consolidation among competitors in the aerospace industry, the cost of developing, and the commercial success of new products, exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies, legal proceeding and other economic, political and technological risk and uncertainties. Additional information regarding these factors is contained in the Company’s “registration document” dated 22 April 2009.