|Revenues||above € 40 bn|
|Airbus deliveries||about 470 aircraft|
|Airbus orders||above 700 aircraft|
|EBIT*||at € 1.8 bn
(detailed conditions see below)
|Free Cash Flow before customer financing||at € 0.5 bn|
EADS confirms the guidance for 2008 that was published on 11 March 2008.
The EADS guidance is based on a closing spot rate at year-end 2008 of € 1 = US$ 1.45.
EADS expects Airbus to capture above 700 aircraft orders in 2008.
EADS revenues are expected to exceed € 40 billion in 2008, with about 470 aircraft deliveries for the full year.
EADS expects its 2008 EBIT* at € 1.8 billion. While, in the first quarter, the strong underlying performance across businesses, particularly at Airbus, shows a satisfactory trend, EADS needs to balance it with challenges on key programmes this year.
The weakening of closing spot rate at year-end 2008 could have negative impacts on earnings linked to the revaluation at a deteriorated US dollar rate of some Airbus balance sheet items, including loss-making contract provisions.
Before the impact of customer financing, EADS expects 2008 Free Cash Flow at € 500 million (keeping in mind it is the most volatile item to predict). This includes the cash consideration for the acquisitions EADS announced lately. If the positive trend of the first quarter is confirmed, upside to this number is possible.
For the 2008 EBIT* guidance as well as for the mid-term outlook, any potential financial impact of the new A380 delivery schedule has not been determined so far.
* 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.