Airbus Group SE (stock exchange symbol: AIR) reported half-year 2016 results marked by a decline in orders and charges on the A400M and A350 programmes, after a second quarter marked by the finalization of the Airbus Safran Launchers Joint Venture and the company’s exit from Dassault Aviation.
Group order intake in the first six months of 2016 was sharply down, at €39.1bn (–27%), with Airbus net orders (183) down by almost 50%. The order book value totalled €978bn as of 30 June 2016 (marginally down from year-end 2015). The order book of Airbus DS decreased by €4.6bn due to perimeter changes. Airbus Helicopters received 127 net orders (H1 2015: 135 net orders) Order intake was stable at Defence and Space.
Group revenues were stable at €28.8bn. Despite slightly lower deliveries of 298 aircraft, revenues were stable at Airbus Commercial, supported by the strengthening US dollar hedge rate. Helicopters’ revenues declined 9%, reflecting an unfavourable mix despite higher deliveries of 163 units (H1 2015: 152 units). Airbus DS revenues were broadly stable.
Group EBIT before one-off was down 10%, at € 1,684m. A charge of € 385m was taken in the second quarter as an addition to the A350 Loss Making Contract provision. The target for a monthly production rate of ten A350s by the end of 2018 remains unchanged.
On the A400M programme, Airbus DS recorded an additional net charge of €1,026m from engine propeller gearbox and other issues, and warned of potential significant financial impact from ongoing commercial negotiations on revised delivery schedules.
Reported EBIT of €1,856m (–17%) included net one-offs totalling €172m which comprised:
- net charge of €1,026m related to the A400M programme;
- €385m net charge on the A350 programme;
- negative impact of €509m related to the dollar pre-delivery payment mismatch and balance sheet revaluation;
- net capital gain of €1,139m linked to the creation of the Airbus Safran Launchers Joint Venture;
- net capital gain of €868m related to the sale of shares in Dassault Aviation and a mark-to-market of the remaining shares;
- total net capital gain of €85m related to portfolio adjustments at Airbus Commercial and Defence and Space.
Net income for the first half rose 16%, to € 1,761m. The company confirmed full-year guidance including more than 650 deliveries of Airbus commercial aircraft.