Airbus reports results for nine-month period 2017

In summary, the results for Airbus’ nine-month results for 2017 reveal revenue of €43bn, EBIT adjusted at €1.8bn, EBIT reported €2.3bn and EPS reported at €2.39bn. According to the company, the commercial aircraft market is healthy with a robust backlog which is supporting ramp-up plans. However, engine delays have had an impact on the 9m results.
According to Tom Enders, Airbus CEO, “The strong backlog and a healthy market environment continue to support our commercial aircraft production ramp-up plans. We confirm our outlook even though this year’s delivery schedule is extremely back-loaded, largely due to the well-known engine problems plaguing our A320neo Family.”
Order intake totaled €50.8bn compared to 9m 2016 of €73.2bn with the order book valued at €945bn as of 30 September 2017 (year-end 2016: €1,060bn). A total of 271 net commercial aircraft orders were received (9m 2016: 380 aircraft), with the order backlog comprising 6,691 aircraft at the end of September. Net helicopter orders totaled 210 units (9m 2016: 211 units), including 14 H175s in the third quarter. At Defence and Space, the good order momentum continued in Military Aircraft with five A330 MRTTs booked in total for Germany and Norway in the third quarter. The overall order intake at the division was impacted by perimeter changes from portfolio reshaping and the slow telecommunications’ satellite market.
Revenues were stable at €43.0bn (9m 2016: €42.7bn) despite the perimeter changes at Defence and Space and were higher on a comparable basis. Commercial Aircraft revenues rose four percent with deliveries of 454 aircraft (9m 2016: 462 aircraft) comprising 350 A320 Family, 50 A350 XWBs, 45 A330s and nine A380s. Helicopters’ revenues were slightly higher with deliveries of 266 units (9m 2016: 258 units). Revenues at Defence and Space reflected the negative impact of around €1.4bn from the perimeter changes. Outlook
As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions. Airbus’ 2017 earnings and Free Cash Flow guidance is based on a constant perimeter:
• Airbus expects to deliver more than 700 commercial aircraft, which depends on engine manufacturers meeting commitments.
• Before M&A, Airbus expects mid-single-digit percentage growth in EBIT Adjusted and EPS Adjusted compared to 2016.
• Free Cash Flow is expected to be similar to 2016 before M&A and Customer Financing.
The perimeter change in Defence and Space is expected to reduce EBIT Adjusted and Free Cash Flow before M&A and Customer Financing by around €150m and EPS Adjusted by around 14%.