Airbus Group has reported consolidated net income of €1,453 million (9m 2017: € 1,398 million) and earnings per share of € 1.88 (9m 2017: € 1.81(1)) included a negative impact from the foreign exchange revaluation of financial instruments partly offset by the positive revaluation of certain equity investments. The finance result was €-413 million (9m 2017: € +101 million). Net income also reflects a higher effective tax rate from the reassessment of tax assets and liabilities.
Consolidated revenues increased to €40.4 billion (9m 2017: €38.0 billion), mainly driven by Airbus and including the perimeter changes. At Airbus, a total of 503 commercial aircraft were delivered (9m 2017: 454 aircraft), comprising 8 A220s, 395 A320 Family, 31 A330s, 61 A350 XWBs and 8 A380s. Airbus Helicopters delivered 218 units (9m 2017: 266 units) with revenues stable on a comparable basis. On a reported basis, Helicopters’ revenues reflected the perimeter change from the sale of Vector Aerospace in late 2017. Revenues at Airbus Defence and Space reflected a stable core business and the perimeter change mainly related to the divestment of Defence Electronics in February 2017 and Airbus DS Communications, Inc. in March 2018.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled €2,738 million (9m 2017: €1,208 million).
Airbus’ EBIT Adjusted of €2,340 million (9m 2017: €806 million) was driven by the A350 performance and higher deliveries, particularly for the A320neo.
Consolidated free cash flow before M&A and customer financing amounted to €-4,169 million (9m 2017: €-3,344 million) and now includes the A220. It reflects progress on aircraft deliveries but also the on-going ramp-up and some finished aircraft. Consolidated free cash flow of €-3,928 million (9m 2017: €-3,208 million) included around €0.4 billion of net proceeds from divestments at Airbus Defence and Space. Cash flow for aircraft financing was limited.
The consolidated net cash position on September 30, 2018 was €7.2 billion (year-end 2017: €13.4 billion) after pension funding of €1.0 billion in the third quarter. The gross cash position was €18.3 billion (year-end 2017: €24.6 billion).
With regard to full-year deliveries, the A320neo ramp-up is ongoing but the level of disruption resulting from the late availability of engines in the first half of 2018 as well as some internal industrial challenges make the full-year 2018 target a greater stretch. A lot remains to be done before the end of the year to fulfill commitments. The A330neo delivery schedule has been adjusted to reflect the engine partner’s latest 2018 outlook. Furthermore, Airbus is actively working to resolve certain commercial challenges on the A330ceo and A380 programmes that are targeted for completion by the year-end.
