Airbus SE — Earnings Release 2003

Jan 8, 2004

News Details

Ad-hoc | 8 January 2004 07:30

EADS 2004 EBIT forecast around 20 percent higher than 2003

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– EADS 2004 EBIT forecast around 20 percent higher than 2003 – EBIT 2004 growth based on the 2003 expectation at a Euro 1.4 billion level – 2004 revenues expected to be about stable – Airbus expects close to 300 aircraft deliveries in 2004 – EADS maintains focus on cash and strong balance sheet EADS (stock exchange symbol: EAD), the world’s second largest aerospace and defence group, expects an increase of its operating results in the year 2004. Ahead of the commercial aviation market upturn expected in 2005, EADS targets around 20 percent EBIT (Earnings before interest and taxes, pre-goodwill amortization and exceptionals) growth in 2004 over the 2003 guidance. The EADS CEOs Philippe Camus and Rainer Hertrich said: “The airline industry is slowly recovering and is still under pressure. We have assigned ourselves realistic targets for 2004, consistent with our practice of financial dependability. These targets are a first milestone on the road to double digit EBIT margins in the medium-term, and they support a solid financial position.” “Diligence is imperative.” the CEOs continued. “We have reviewed the current Space restructuring plan, and it is fully on track; we have also audited our Airbus order book and are continuing to carefully manage the growth of our defence business.” EADS also confirms its full-year 2003 targets. For 2004, EADS targets generally stable revenues of around Euro 29 – 30 billion, for the fourth straight year in this general downturn of the industry. Defence business growth is expected to offset the decline of Airbus revenues attributable to the combination of the US currency weakness and slightly lower deliveries. The 2004 revenues target is based on the assumption of a weaker US Dollar than in 2003 (1Euro = US Dollar 1.20, compared to 1Euro = US Dollar 1.10) for the computation of the portion of revenues that is naturally hedged by US Dollar denominated purchasing (amounting to about one third of overall EADS revenues). Following a careful assessment of its order book, Airbus targets close to 300 aircraft deliveries in 2004. A conservative management of delivery slots gives EADS flexibility to face unexpected events and to apply customer financing restraint. The slight decline of Airbus deliveries and the continuing A380 R&D effort will hamper 2004 EBIT. The recovery of the Space Division is the main source of increased profitability. The dramatic restructuring plan currently under implementation and a number of organizational improvements are the main drivers of the expected swing to breakeven EBIT of this Division in 2004. end of ad-hoc-announcement (c)DGAP 08.01.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The successful delivery ramp up of missile programmes, Eurofighter, military helicopters and the acceleration of the A400M development revenues will contribute to the growth of the EBIT. At the same time following the high level of defence contract acquisition, management will direct its focus to the execution of large programmes and to the performance of the overall defence business. Contact: Eckhard Zanger EADS Communications Finance Tel. +49 89 607 27961 ——————————————————————————– WKN: 938914; ISIN: NL0000235190; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 080730 Jän 04