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EADS Annual Profit Climbs 19%; Sees Earnings Growth In 2013

Airbus maker European Aeronautic Defence and Space Company EADS NV (EADSY.PK,EADSF.PK) Wednesday reported a 19 percent increase in annual profit, as revenues climbed 15 percent on increased deliveries at Airbus Commercial. The company hiked its dividend and sees higher adjusted earnings before interest and taxes in 2013.

EADS saw continued momentum in its commercial activities, despite a difficult macro-economic environment, while defence revenues were broadly stable.

Tom Enders, CEO of the company, said, "EADS achieved double-digit revenue and profit growth during 2012 while the order backlog increased further...Going-forward, the focus on bottom line growth remains our priority number one as a management team.''

Net income for the year climbed 19 percent to 1.228 billion euros ($1.606 billion) from 1.033 billion euros in the previous year.

One-off charges totaled 820 million euros in 2012, including an anticipated 251 million euros on the A380 related to the wing rib feet repair.

Net Income before one-off items was 1.838 billion euros. In 2011, adjusted net income totaled 1.132 billion euros.

Excluding items, earnings before interest and taxes, or EBIT, increased 68 percent to 3.0 billion euros. EADS attributed the increase to strong operational performance at Airbus Commercial with positive contributions from Eurocopter and Astrium.

Revenues improved 15 percent to 56.480 billion euros from 49.128 billion euros last year, driven mainly by higher volume and more favorable U.S. dollar rates at Airbus Commercial as well as solid increases at Eurocopter and Astrium.

EADS noted that the companies acquired in 2011 contributed around 1.5 billion euros to revenues in 2012.

In the Airbus division, revenues advanced 17 percent to 38.592 billion euros with a 19 percent increase in Airbus Commercial, even as Airbus Military revenues dropped 15 percent.

Eurocopter revenues were higher by 16 percent at 6.264 billion euros, while Astrium revenues climbed 17 percent to 5.817 billion euros. EADS said revenues at Eurocopter and Astrium were boosted by the services businesses, including Vector Aerospace and Vizada.

Airbus Commercial deliveries increased to 588 aircraft from 534 aircraft. Airbus Military deliveries were 29, flat with last year.

For the fourth quarter, net income plunged 47 percent to 325 million euros from 612 million euros in the same quarter last year. Revenues climbed 17 percent to 19.222 billion euros from 16.441 billion euros in the prior year.

Further, EADS announced a dividend of 0.60 euros per share, up from last year's 0.45 euros per share, reflecting the progress made during 2012.

Looking ahead, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruption due to the current sovereign debt crisis.

EADS said it targets adjusted EBIT of 3.5 billion euros in 2013 and sees adjusted earnings per share of around 2.50 euros, compared to 2.24 euros in the previous year, prior to the proposed share buyback.

Expecting lower A380 deliveries, EADS sees moderate revenue growth in 2013. Airbus deliveries are expected to continue to grow between 600 and 610 commercial aircraft.

The stock fell 1.9 percent to 34.87 euros on Tuesday.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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