• 2014 guidance confirmed with Airbus net book-to-bill above 1
• 2015 return on sales guidance pre A330neo unchanged

Airbus Group (stock exchange symbol: AIR) reported solid results for the first half of 2014, reflecting operational improvement and the continued focus on programme execution.

Demand for the Group’s products remains strong as shown at July’s Farnborough Air Show, where Airbus announced 496 aircraft orders and commitments confirming the health of the commercial aircraft market. The A330neo was endorsed by the market with 121 commitments announced at the show. Group order intake(2)  in the first half was € 27.7 billion (H1 2013: € 95.6 billion(1)), with the order book(2) worth € 677.4 billion on 30 June, 2014 (year-end 2013: € 680.6 billion(1)). Airbus received 290 net commercial aircraft orders (H1 2013: 722 net orders(1)). Net order intake at Airbus Helicopters was 148 units (H1 2013: 167 units) while in July agreements were signed to supply 123 rotorcraft to China. Airbus Defence and Space’s order intake by value was stable, with continued momentum in space activities and 17 light and medium transport aircraft orders received.

“The first half of 2014 was all about keeping our main development and series programmes on track and implementing our restructuring plans in defence and space,” said Airbus Group CEO Tom Enders. “This is shown in the solid improvement in revenues and profitability. We saw good commercial order momentum at Farnborough and have shown our commitment to ensure the Group’s long-term competitiveness through the A330neo launch and the joint venture in space launchers.”

Group revenues increased six percent to € 27.2 billion (H1 2013: € 25.7 billion(1)), driven by Airbus Commercial Aircraft and Airbus Helicopters with flat revenues at Airbus Defence and Space. Airbus’ revenues rose seven percent, reflecting the increase in deliveries to 303 aircraft (H1 2013: 295 deliveries(1)) and a more favourable mix, including five additional A380s compared to a year earlier. Airbus Helicopters’ revenues rose eight percent as deliveries increased to 200 units (H1 2013: 190 units) including the NH90 ramp up. At Airbus Defence and Space, satellite launches in the second quarter included the Earth observation satellite Spot 7.

Group EBIT* before one-off – an indicator capturing the underlying business margin by excluding material non-recurring charges or profits caused by movements in provisions related to programmes and restructurings or foreign exchange impacts – improved to € 1,769 million (H1 2013: € 1,614 million(1)). It included a capital gain of € 60 million from the sale of the Paris Headquarters building. EBIT* before one-off for Airbus rose to € 1,287 million (H1 2013: € 1,231 million(1)), reflecting operational improvement but was weighed down by A350 XWB support costs and a more front-loaded research and development (R&D) expense profile compared to 2013. EBIT* before one-off at Airbus Helicopters rose to € 150 million (H1 2013: € 128 million), reflecting the Super Puma recovery and services activities. Airbus Defence and Space’s EBIT* before one-off was stable at € 223 million (H1 2013: € 216 million(1)). The Group EBIT* before one-off return on sales was 6.5 percent (H1 2013:6.3 percent).

The A350 XWB programme is on track for certification in the third quarter of 2014 and entry-into-service by year-end. All five development aircraft are now flying with more than 2,250 flight test hours accumulated. The first A320neo is being prepared for the first flight in September with the programme on track for entry-into-service in the fourth quarter of 2015. Entry-into-service for the A330neo is scheduled for the final quarter of 2017. At Airbus Helicopters, the EC175 programme is progressing towards entry-into-service in the fourth quarter of 2014. Airbus Defence and Space’s restructuring plan is progressing and on track. After the delivery of Turkey’s first aircraft in April and France’s third in late July, the A400M programme enters in progressive enhancement with military capability with some delays incurred. The sequence of progressive enhancements is under final negotiation with customers. Risks related to the cost envelope and military functionality are being closely monitored. Airbus Group and Safran agreed in June to create a 50:50 joint venture to improve competitiveness in the space launcher segment. As part of a portfolio review, Airbus Group continues to pursue disposal options for its investment in Dassault Aviation.

Reported EBIT*(3) increased 24 percent to € 1,839 million (H1 2013: € 1,478 million(1)) and included a € 70 million positive contribution from the dollar pre-delivery payment mismatch and balance sheet revaluation. The finance result was € -252 million (H1 2013: € -417 million(1)) while net income(4) increased to € 1,135 million (H1 2013: € 758 million(1)), or earnings per share (EPS) of € 1.45 (EPS H1 2013: € 0.94(1)). Net income and EPS also reflected favourable foreign exchange effects.  Group self-financed R&D expenses increased to € 1,564 million (H1 2013: € 1,399 million(1)). Free cash flow before acquisitions improved significantly to € -2,270 million (H1 2013: € -4,060 million(1)), reflecting tight cash control and investment in production and development programmes. The net cash position on June 30, 2014 was € 5.4 billion (year-end 2013: € 8.5 billion(1)) after the 2013 dividend payment of € 587 million and € 336 million pension plan contribution. The gross cash position was € 13.5 billion.

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