Mercedes 2004 Annual Report Download - page 75

EADS
EADS continues to grow. Thanks to increased demand in the
civil aviation sector, the EADS (European Aeronautic Defence and
Space Company) performed very well in 2004. EADS, which is
one of the world’s leading aerospace and defense groups, will
publish its results for the 2004 financial year on March 9, 2005.
During the first nine months of 2004, the company generated
revenues of €21.5 billion as defined by the International Financial
Reporting Standards (IFRS), or 16% more than in the same
period of 2003. All of EADS’ divisions contributed to this increase,
and revenues were particularly boosted by the rise in Airbus
deliveries to 224 aircraft during the first nine months (compared
to 199 aircraft in the period of January through September
2003).
In the first nine months of the year, the company achieved an EBIT
(earnings before interest, taxes, goodwill amortization and
exceptional items) of €1.5 billion, up 91% on the same period of
2003. This encouraging growth in earnings was driven by the
excellent result at Airbus and the turnaround at the Space division.
Incoming orders at EADS for the months of January through
September amounted to €20.6 billion, thus nearly equaling the
level of revenues. The order book was again the largest in the
industry and had reached €179.7 billion by the end of September
2004.
Due to the continued upswing of the civil aviation market and
the positive business developments assumed for the fourth
quarter, EADS expects for the year as a whole revenues of around
€32 billion and to result in an EBIT of more than €2.3 billion.
Airbus maintains global market leadership. In 2004, Airbus
maintained its leading position in the civil aviation sector by
delivering 320 aircraft to its customers, once again outperforming
its main competitor, Boeing. All in all, Airbus recorded 370 new
firm orders in 2004 (2003: 284). This substantial increase on the
previous year’s figure was due to a significantly improved
market situation. In the year 2004, Airbus had an order book
of 1,500 civil aircraft (2003: 1,454).
Airbus received purchase commitments from Etihad Airways –
the national airline of the United Arab Emirates – as well as from
Thai Airways. Both customers are substantially expanding their
fleets of Airbus aircraft and have also decided to purchase the new
A380 wide-body jet. This new aircraft is scheduled to make its
maiden flight in spring 2005. In addition, Airbus landed several
major contracts from companies in Central Asia: a further 49
Airbus aircraft were ordered in 2004 by China Eastern Airlines
and Air China.
In December 2004, EADS decided to go ahead with the
development of the new A350. With this aircraft, Airbus will be
well posi-tioned in the market for the next generation of highly
efficient long-distance planes.
Upswing for other divisions as well. Within the Aeronautics
division, the growth in earnings at Eurocopter offset the
continued weak performance of the maintenance business.
Two examples of EADS’ commercial success last year are the
order received from the Australian armed forces for the Airbus
A330 MRTT tanker aircraft, and the helicopters ordered by
the US Department of Homeland Security.
The Space division managed to achieve the turnaround in the past
financial year, thus laying the foundation for further improve-
ments in profitability. The division’s order book was substantially
increased in May 2004 by the signing of a contract for 30 Ariane
5 launchers.
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