Mercedes 2003 Annual Report Download - page 67
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Please find page 67 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.EADS
Strengthened position despite difficult market environment.
Despite a continuation of difficult market conditions, 2003 was
generally positive for the European Aeronautic Defence and Space
Company (EADS), the world's second-largest aerospace and
defense company.
In the first nine months of the year 2003, the company’s revenues,
which are determined in accordance with International Financial
Reporting Standards (IFRS), amounted to €18.5 billion, 7% lower
than the prior-year figure. The decrease was mainly caused by lower
deliveries of Airbus aircraft during the third quarter of 2003.
In the period January through September 2003, EADS achieved
pretax earnings (EBIT: earnings before interest and taxes, goodwill
amortization and exceptionals) of €0.8 billion (Jan.-Sept. 2002:
€1.0 billion). The decline compared with the prior-year period was
primarily due to a scheduled €0.2 billion increase in research
and development expenses at Airbus, mainly related to the new
A380 double-deck aircraft.
Incoming orders at EADS for the nine-month period increased from
€22.3 billion to €49.5 billion, primarily due to major orders for Air-
bus aircraft and defense systems. As a result of sales success in all
of its divisions, the order backlog of €186.7 billion at September 30,
2003 once again exceeded the level of the prior year (€176.6 billion).
Due to the positive business development in the fourth quarter,
EADS anticipates EBIT for full-year 2003 to be similar to the prior
year’s level of about €1.4 billion. Revenues are also expected to be
similar to 2002. EADS will publish its figures for the 2003 financial
year on March 8, 2004.
Airbus remains successful. With deliveries of 305 aircraft in
2003, Airbus achieved its target, and for the first time delivered
more aircraft than Boeing, its main competitor. Airbus won 284
new orders, which is a major success considering the ongoing
difficulties facing many airlines. As a result, Airbus was able to
increase its market share to 65% in terms of the value of aircraft
sold. As of December 31, 2003, Airbus had an order backlog of
1,454 civil aircraft (end of 2002: 1,505).
Airbus concluded major contracts with a number of companies,
including US low-price airline JetBlue Airways, which ordered 65
A320 aircraft. Another major contract came from Emirates Airlines,
which ordered 21 wide-bodied A380 aircraft. By the end of 2003,
Airbus had received a total of 129 firm orders from 11 customers
for the future A380 airbus. The A380 program is on target with
respect to both scheduling and costs.
Favorable development of other units. EADS further increased
its revenues, earnings and incoming orders in the defense sector.
Encompassing a total order volume of around €20 billion, the order
for the A400M military transport aircraft was the biggest defense
contract in EADS’ history. Major contracts were also signed for
guided missiles and activities associated with military communica-
tions satellites in the context of the United Kingdom Ministry of
Defence’s Skynet 5 order.
EADS’s Space division made substantial headway with its restruc-
turing efforts, although earnings were burdened due to restructur-
ing costs and provisions formed for existing contracts.
The decision to develop Galileo, the European satellite navigation
system, as well as major contracts for the Ariane launcher rocket
and satellite-related activities, clearly demonstrated the increased
competitiveness of the company’s space business.
The increase in the Aeronautics unit’s revenues and contribution to
earnings was primarily the result of positive business developments
at Eurocopter, its helicopter manufacturer.
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The Airbus A300-600 ST “Beluga” transport aircraft ferries large components from the European Airbus partners to the final assembly locations in Toulouse and Hamburg