|Revenues||decrease by a low single-digit percentage factor|
|Airbus deliveries||440 to 450 aircraft|
|EBIT*||to roughly break-even|
|Free Cash Flow||over 1bn€, subject to Paradigm sell down|
EADS revenues are expected to decrease very slightly in 2007 compared to 2006, based on 440 to 450 aircraft deliveries for the full year, mainly due to an assumed exchange rate of € 1 = US$ 1.40.
All other factors held equal, EADS' full year EBIT* is expected to break-even in 2007, reflecting the satisfactory results of the Group's strong legacy programmes, and a lower deterioration of delivered aircraft prices than expected.
This projection is based on the same A400M programme assumptions that underly the charge taken in the third quarter. Besides, it does not take into account the potential influence of short-term currency movements on revaluations of existing provisions.
EADS expects Free Cash Flow to surpass € 1 billion in 2007, provided the sell-down of Paradigm revenue streams from the UK MoD can be completed timely. Were this condition not met, Free Cash Flow is expected to be positive in any case.
* EADS uses EBIT pre-goodwill impairment 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, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.