Airbus SE — Earnings Release 2004

May 12, 2004

News Details

Ad-hoc | 12 May 2004 07:00

EADS strongly improves first quarter performance

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Ad-hoc release EADS 12 May 2004 EADS strongly improves first quarter performance EADS first quarter 2004 EBIT* of Euro 198 million Revenues up 9 percent to Euro 6 billion Strong cash generation Net Income of Euro 49 million Results confirm 2004 targets – increased confidence in EADS’ performance and medium-term growth EADS (stock exchange symbol: EAD), the world’s second largest aerospace and defence group, strongly improved its financial performance in the first quarter. From January to March 2004, the company reached an EBIT* (pre-goodwill and exceptionals) of Euro 198 million, 52 percent above the figure disclosed for the same period of 2003 (Euro 130 million). In the same period, revenues grew by 9 percent to Euro 6 billion. EBIT* improved in all Divisions but Aeronautics. Defence contract and Space turnaround execution are on track. Self-financed Research & Development (R&D) has continued at the same pace, namely for the A380. CEOs: “Results confirm our 2004 targets” The EADS CEOs Philippe Camus and Rainer Hertrich said: “The first quarter results confirm our targets for this year. For the medium-term, we are increasingly confident in our growth prospects – we notice further improvements in the civil aviation market, which we expect to speed up further in 2005. And our defence businesses will continue to increase their contributions. We are exceptionally well positioned to fully benefit from the expected upturn. EADS is on track to reach new levels; all businesses have achieved breakthroughs: A380 first assembly has started; defence businesses are reaping the benefits from cross-business synergies and from transatlantic alliances; in Space, we are building a profitable business that contributes across the portfolio.” Net Cash position increased Cash was mostly generated by the stronger EBIT* and working capital improvement. Free Cash Flow before customer financing surged to Euro 419 million (Euro -309 million for the first quarter 2003). The Net Cash position increased from Euro 3.1 billion at year-end 2003 to Euro 3.4 billion as of 31 March 2004. Net Income of Euro 49 million EADS recorded Net Income of Euro 49 million (same period 2003: Euro 28 million on a comparable basis), or Euro 0.06 per share, for the first quarter of 2004. As of 1 January 2004, EADS has anticipated the application of IFRS 3 (International Financial Reporting Standards); goodwill is no longer amortized regularly. Outlook EADS confirms the outlook for 2004 that was published on 8 March 2004. The company expects to reach EBIT* of Euro 1.8 billion and revenues in the range of Euro 29 to Euro 30 billion, based on an average exchange rate of Euro 1 = US- Dollar 1.20. There are first signals that the markets might be stronger than expected; these signals raise our confidence in the assumptions of our targets for 2004. * EADS uses EBIT pre-goodwill amortization and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger and impairment losses. It does not correspond to the definition of extraordinary items under IFRS. end of ad-hoc-announcement (c)DGAP 12.05.2004 ——————————————————————————– WKN: 938914; ISIN: NL0000235190; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 120700 Mai 04