|Revenues||roughly stable (at 1.40 $ vs €)|
|Airbus deliveries||up to the same level as in 2009|
|Airbus gross orders||250-300|
|EBIT *||1 bn €|
|Free cash flow after customer financing||negative|
The Group is fundamentally solid to cope with the 2010 economic environment. The improving market trend is confirmed, especially on air traffic, with volatility remaining. The helicopter market is still uncertain. This solidity is based on a resilient, actively managed backlog of 3,426 aircraft at Airbus Commercial, 1,301 in Eurocopter and strong backlog in the Space and Defence businesses.
EADS confirms its 2010 outlook as released on 9 March 2010.
Based on a number of active campaigns, gross orders at Airbus should be between 250 and 300 in 2010.
In 2010, Airbus expects to deliver up to the same level of aircraft as in 2009 (year-end 2009: 498 aircraft). Eurocopter should deliver around 6 percent less helicopters in 2010 compared to the previous year (year-end 2009: 558 helicopters).
Therefore, using € 1 = $ 1.40 as the average spot rate, EADS revenues should be roughly stable in 2010 (year-end 2009: € 42.8 billion).
EADS’ EBIT* in 2010 will be around € 1 billion. The deterioration of the hedge rates will weigh by about € -1 billion compared to 2009. A380, while slightly improving, will continue to weigh substantially on the EBIT* before one-off as in 2009. Cost savings and some improvement on aircraft pricing should contribute positively while weaker helicopter deliveries, some increase in Research & Development (R&D) and cost inflation will weigh on profitability.
Going forward, the EBIT* performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350XWB programmes in line with the commitments made to its customers.
Provided a sustainable year-end cash inflow of institutional and governmental business and subject to pre-delivery payment advances in the A400M programme, the Free Cash Flow before customer financing should be break-even. Free Cash Flow after customer financing should be negative due to customer financing cash-outflows of around € 1 billion. If market conditions continue to improve, less cash flow should be consumed by customer financing.
* 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