• Revenues of € 9.0 billion: high level of deliveries sustained
  • EBIT* before one-off at € 0.15 billion
  • EBIT* of € 83 million
  • Net income: € 103 million
  • Net Cash at € 8.8 billion remains strong

EADS’ (stock exchange symbol: EAD) macro-economic and commercial environment is gradually improving but remains challenging. Proactive order-book management and robust deliveries across all businesses continued throughout the first quarter. Revenues stood at
€ 9.0 billion. The EBIT* before one-off amounted to € 0.15 billion thanks to good performance in Airbus legacy programmes as well as space and defence activities. It was weighed down by A380 and hedge deterioration. EADS’ EBIT* amounted to € 83 million after exceptional foreign exchange effects. The order intake of € 14.4 billion reflects improving commercial momentum in a challenging market environment. The Group’s order book of € 416 billion provides a solid platform for future deliveries. EADS’ Net Cash position of € 8.8 billion remains a strong asset.

“I am cautiously optimistic that our industry is slowly on its way back up. Economic indicators signal a recovery trend of the global economy. This has a clear positive impact on air traffic. But recent turbulence on the financial markets also reminds us that the crisis is not yet fully behind us. Volatility is still high, particularly due to the weakness of some Euro-zone economies. Due to the corresponding strengthening of the Dollar, EADS should benefit in the mid- and long-term if the Dollar trend is confirmed”, said Louis Gallois, CEO of EADS. “The key priority for this year is to deliver on our programmes. We need to progress with the A380, to finalise the contract amendment with the Customer Nations on A400M, while moving forward on the technical side and to step up the development of the A350.”

In the first three months, EADS’ revenues increased to € 9.0 billion (Q1 2009: € 8.5 billion), supported by a combination of higher volume and a favourable mix on commercial aircraft deliveries at Airbus (119 units with revenue recognition compared to 116 in Q1 2009). Moreover, Eurocopter, Astrium and Other Businesses contributed positively. These effects were partly offset by negative foreign exchange impacts and lower revenue recognition for the A400M programme. In 2010, the application of the percentage of completion method is resumed; no revenue milestones have been recognised in the first quarter 2010.

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 € 0.15 billion (Q1 2009: € 0.4 billion) for EADS. Compared to Q1 2009, a favourable mix on Single Aisle and Long Range aircraft were more than offset by mainly the degradation of hedge rates and a reduction of Headquarters and eliminations EBIT*. This reduction is due to a change in the allocation of real estate costs and a lower contribution from Dassault. In addition, the A380 continues to weigh significantly on the underlying performance. Despite strong currency headwinds and A380 operational challenges, EBIT* before one-off at Airbus amounted to € 0.08 billion.

EADS’ EBIT* of € 83 million (Q1 2009: € 232 million) was further weighed down by exceptional negative foreign exchange impacts. Exchange rate impacts weighed on the Q1 2010 EBIT* by around € 300 million compared to Q1 2009.

Net Income amounted to € 103 million (Q1 2009: € 170 million), or earnings per share of € 0.13 (earnings per share Q1 2009: € 0.21). This reduction was driven by the EBIT* deterioration. The financial result improved: the main change comes from the 2009 negative revaluation of the options while in the first quarter of 2010 the option restructuring programme was completed. Self-financed Research & Development (R&D) expenses slightly increased to € 572 million (Q1 2009: € 562 million), mainly due to higher activities at Defence & Security.

Free Cash Flow before customer financing of € -972 million (Q1 2009:
€ -600 million) reflected an increase of inventories and the cut off effect of customer payments received at the end of 2009. Customer financing needs for the quarter amounted to around
€ 150 million. Free Cash Flow after customer financing amounted to € -1,124 million (Q1 2009: € -585 million).

The Group’s Net Cash position stood at € 8.8 billion (year-end 2009:
€ 9.8 billion). The seasonality of EADS' defence and institutional businesses implies that revenue, earnings and cash performance tend to be back-loaded.

The Group’s order intake of € 14.4 billion was significantly above the 2009 level (Q1 2009:
€ 9.3 billion), primarily due to higher commercial aircraft orders for the A330 and A350XWB at Airbus but with slow momentum in the commercial helicopter market recovery. At the end of March 2010, the order book of EADS stands at a robust € 415.8 billion (year-end 2009:
€ 389.1 billion), reflecting increases at all Divisions. The Airbus backlog benefited from a positive revaluation impact of around € 22 billion due to the closing spot rate of the
U.S. Dollar that has significantly strengthened since year-end. The defence order book stood stable at € 57.7 billion (year-end 2009: € 57.3 billion) thanks to space service and missile orders.

At the end of March 2010, EADS had 119,860 employees (year-end 2009: 119,506).

Update on the U.S. Air Force (USAF) tanker modernisation programme

On 20 April 2010, EADS North America announced its intention to submit a proposal as prime contractor for the USAF tanker modernisation programme due on 9 July 2010 and to offer the KC-45—the only aircraft flying today that meets the U.S. Air Force’s tanker requirements as outlined in the KC-X Request for Proposal (RFP). The KC-45 builds on the EADS-based tanker that was previously selected in 2008 by the Department of Defense (DoD) and that has won the last five consecutive tanker competitions worldwide. EADS North America has assembled a U.S. industrial team to support the KC-45 offering. The DoD has clearly stated that EADS North America is a qualified provider and capable of executing all prime contractor responsibilities, including classified work. The company will continue to add to its industrial team in ways that strengthen the KC-45 offering.


The Group is fundamentally solid to cope with the 2010 economic environment. The improving market trend is confirmed, especially on air traffic, with volatility remaining. The helicopter market is still uncertain. This solidity is based on a resilient, actively managed backlog of 3,426 aircraft at Airbus Commercial, 1,301 in Eurocopter and strong backlog in the Space and Defence businesses.

EADS confirms its 2010 outlook as released on 9 March 2010.

Based on a number of active campaigns, gross orders at Airbus should be between 250 and 300 in 2010.

In 2010, Airbus expects to deliver up to the same level of aircraft as in 2009 (year-end 2009: 498 aircraft). Eurocopter should deliver around 6 percent less helicopters in 2010 compared to the previous year (year-end 2009: 558 helicopters).

Therefore, using € 1 = $ 1.40 as the average spot rate, EADS revenues should be roughly stable in 2010 (year-end 2009: € 42.8 billion).

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 on 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 A350XWB programmes in line with the commitments made to its customers.

Provided a sustainable year-end cash inflow of institutional and governmental business and subject to pre-delivery payment advances in 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. If market conditions continue to improve, less cash flow should be consumed by customer financing.

EADS Divisions: Stable institutional and governmental business and gradually improving commercial conditions

Airbus’ consolidated revenues of € 6,264 million increased compared to the same quarter last year (Q1 2009: € 5,883 million). The Airbus consolidated EBIT* amounted to € 7 million (Q1 2009: € 89 million).

Airbus Commercial revenues amounted to € 5,989 million (Q1 2009:
€ 5,470 million). Deliveries increased to 122 commercial aircraft (Q1 2009: 116 aircraft). Compared to a year ago, Airbus Commercial revenues benefited from higher volumes and a favourable mix in commercial aircraft. Three Single Aisle aircraft were delivered under operating lease with no revenue recognition. Compared to the first quarter of the previous year, the deterioration in foreign exchange rates has resulted in a negative impact of around
€ 400 million. Airbus Commercial EBIT* decreased to € 6 million compared to € 205 million in Q1 2009. It reflects a favourable mix effect on Single Aisle and Long Range aircraft deliveries that is weighed down mainly by negative foreign exchange effects. In addition, the A380 continues to weigh significantly on the underlying performance.

Airbus Military revenues amounted to € 384 million (Q1 2009: € 456 million). Airbus Military EBIT* increased to € 1 million (Q1 2009: € -116 million weighed down by the A400M provision). Results benefited from an increase in Tanker activity for the United Arab Emirates and Future Strategic Tanker Aircraft programmes. No revenue milestone was recognised on the A400M programme between year-end 2009 and the first quarter of 2010, therefore revenue and EBIT* contribution is zero. Costs incurred have been recorded under work in progress.

In the first quarter, Airbus delivered positive commercial results in a challenging market: 60 new firm commercial orders were booked and 122 aircraft were delivered including three A380 and three Single Aisle aircraft under operating lease. More than 80 percent of aircraft ordered in the first quarter were for A330 and A350XWB. No cancellations were registered
(Q1 2009: 14 aircraft). Airbus Military registered no new orders in the first quarter.

In January 2010, Emirates Airlines received its eighth A380, marking the 6,000 th aircraft produced by Airbus in its 40-year history. United Airlines signed a firm order for 25 A350XWB, which represents a major breakthrough in the U.S. market, pushing A350XWB orders to 530 aircraft. Following a successful flight test campaign, the A330-200 Freighter was granted Type Certification by the European Aviation Safety Agency in early April 2010. At Airbus Military, the A400M development is in full swing. In early April, the second A400M performed its maiden flight and is now supporting the flight test campaign. The first tanker aircraft for the Royal Australian Air Force obtained the civil Certification of the European Aviation Safety Agency on 17 March 2010. The military certification is scheduled for summer 2010.

As of 31 March 2010, Airbus’ consolidated order book was valued at € 366.1 billion (year-end 2009: € 339.7 billion). Airbus Commercial accounted for € 346.2 billion (year-end 2009:
€ 320.3 billion), which equals 3,426 units (year-end 2009: 3,488 aircraft). The Airbus Military order book remained stable at € 21.2 billion (year-end 2009: € 20.7 billion).

In the first three months of 2010, revenues for Eurocopter grew by 5 percent to € 798 million (Q1 2009: € 758 million). This growth was generated thanks to a favourable phasing of customer support activities in the first quarter and an increase in revenue recognition for the NH90. The Division’s EBIT* decreased to € 26 million (Q1 2009: € 38 million). Positive contributions from services were weighed down by negative headwinds from foreign exchange effects, increasing product investments and a lower margin on the NH90 programme. Eurocopter achieved a significant milestone on the naval version of the NH90 in the quarter with the first customer qualifications for France and the Netherlands. The Korean Utility Helicopter prototype (Surion), developed by Korean Aerospace Industries with the support of Eurocopter, as well as the German Army CH-53GA, upgraded by Eurocopter for Personnel Recovery missions, both successfully performed their maiden flights on schedule. Eurocopter has begun implementation of its SHAPE programme aiming at securing the company’s competitiveness and maintaining its leadership in the future. The programme also includes several savings initiatives.

For Eurocopter, the market is still uncertain but 2010 has begun with a positive trend of bookings and cancellations compared to the first quarter of last year. But commercial appetite is still far below 2007 and 2008 levels. The trend of bookings over the quarter improved with 84 net orders (including 8 Light Utility Helicopters, or LUH) registered compared to 66 in Q1 2009. The cancellation trend is slowing: in Q1 2010 cancellations amounted to 18 helicopters compared to 28 a year earlier. Deliveries in the first three months include 2 Tigers, 4 NH90 and 6 LUH. At 86 helicopters, the Q1 2010 deliveries are lower compared to those of the same period last year (Q1 2009: 93 helicopters). Eurocopter’s order book increased to
€ 15.3 billion (year-end 2009: € 15.1 billion) with 1,301 helicopters (year-end 2009: 1,303 helicopters).

Astrium revenues grew slightly (2 percent) in Q1 2010, amounting to € 924 million (Q1 2009: € 904 million). Revenue performance reflects increased development and production in defence activities as well as growth in telecom services. EBIT* improved by 14 percent to
€ 41 million (Q1 2009: € 36 million), thanks to strong defence activities and growth in telecom services which were partly offset by lower volume and margin in navigation satellites and a lower margin in earth observation satellites.

Astrium recorded significant achievements across its businesses in the first quarter. In services, Paradigm signed an extension to the Skynet 5 services contract with the UK Ministry of Defence (MoD). This adds a fourth satellite to the constellation and will enhance the service provision capabilities for military satellite communication, providing additional capacity to a growing international market until 2022. Astrium has been awarded a contract by the European Defence Agency (EDA) for a new preparatory study aimed at coordinating the future military communication needs of the European Union (EU). The Division was also awarded two contracts by the European Space Agency (ESA): the initial development phase to enhance the performance of Ariane 5 and the construction of the Sentinel-2B optical satellite.

The order intake of € 1.2 billion for the first quarter shows successes across the Division’s business segments. However, it was significantly lower than in Q1 2009 (Q1 2009:
€ 5.6 billion) which included among others the Ariane 5 PB batch of 35 launchers. At the end of March 2010, the order book for Astrium stood at € 15.0 billion (year-end 2009:
€ 14.7 billion).

The Defence & Security (DS) Division’s Q1 2010 revenues of € 928 million were roughly in line with the previous year (Q1 2009: € 934 million). Higher export revenues on missile programmes were offset by lower volume this quarter on military aircraft services, which should pick up later this year.

EBIT* remained stable at € 21 million (Q1 2009: € 21 million). Higher volume in export missile programmes, a better mix from maintenance and training activities offset the significant increase in R&D in the first quarter. This increased R&D effort is concentrated mainly on the UAV and secure communication segments.

DS secured and delivered on important contracts in the first quarter. MBDA and the UK MoD have agreed on a long-term partnering arrangement for the supply and support of complex weapons which led to an order worth € 132 million (representing the 37.5% share) for the deployment of new military capabilities into Afghanistan. In addition, DS signed a number of contracts for its TETRA radio network system, including a contract with the Shenzhen Public Security Bureau to make the largest digital network for the police in China. In February, DS delivered the second batch of 35 modified UAV Drone de Reconnaissance au Contact (DRAC) systems to the French Army to enhance capabilities in mountainous terrain. At the end of March 2010, the Division’s order book stood at € 18.9 billion (year-end 2009: € 18.8 billion) and provides a solid platform for future growth.

Headquarters and Other Businesses (not belonging to any Division)

Revenues of Other Businesses increased by 15 percent to € 246 million (Q1 2009:
€ 214 million), driven by higher deliveries and asset management activity at ATR. EBIT* of Other Businesses amounted to € -1 million (Q1 2009: € 0 million). A small increase at ATR and EADS North America was offset by a decrease in Sogerma due to the decline in the jet engine MRO business, which was impacted by the economic crisis.

ATR delivered 13 aircraft in the first quarter (Q1 2009: 8 aircraft) and received orders for 8 units (Q1 2009: 0 units). No cancellations were registered. At the end of March 2010, ATR’s order book stood at 128 aircraft. In the first quarter of 2010, EADS continued to foster its U.S. defence footprint: In March, EADS North America delivered its 100 th LUH to the U.S. Army. This latest milestone marks another on-time and on-budget achievement in this successful programme. EADS North America and Infoterra received a five-year, $ 85 million contract to provide commercial radar satellite data to the U.S. government’s National Geospatial-Intelligence Agency (NGA) for use in intelligence, military and homeland security applications. On 31 March 2010, the order book of Other Businesses stood unchanged at € 2.0 billion (year-end 2009: € 2.0 billion).


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.

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 – Q1 2010 Results (unaudited)

(Amounts in Euro)


  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. Airbus Commercial figures for the first quarter of 2009 are now shown in detail and Airbus Military’s EBIT* for the first quarter of 2009 has been restated to reflect the changes.

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 21 April 2010. For more information, please refer to www.eads.com.