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Passing several important milestones for the new A400M heavy transport aircraft boosted revenues. Medium and light aircraft retained their market leadership.
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|
(€m) |
2006 |
2005 |
Variation |
|
|
|
|
|
|
Revenues |
2,200 |
763 |
188% |
|
75 |
48 |
56% | |
|
Order intake |
1,594 |
1,840 |
-13% |
|
Order book |
20,337 |
20,961 |
-3% |
The Division focused mainly on managing the industrial processes of its two new aircraft programmes, both of which are at important stages. The A330 Multi-Role Tanker Transport (
MRTT) with the new refuelling system and boom is scheduled to enter into service in 2009. The A400M’s first delivery is also foreseen for 2009. Orders for medium and light aircraft confirmed EADS CASA’s worldwide leadership in this market segment.
Revenues expanded substantially to €2.2 billion (€763 million in 2005) and EBIT grew to €75 million (€48 million in 2005), primarily reflecting the achievement of all contractual and internal A400M milestones planned for 2006, as well as the effect of a shift in 2006 of revenue recognition associated with a 2005 A400M internal industrial milestone.
The order book was stable, finishing the year slightly lower at €20.3 billion (€21.0 billion in 2005). The Malaysian contract for four A400Ms was booked during the year. The medium and light aircraft business won orders for 20 new aircraft, including twelve C-295 medium-weight transport and maritime patrol aircraft for the Portuguese air force. This was the first contract for a maritime patrol aircraft based on the C-295 platform. Finland, Poland and Spain also ordered C-295s, and a contract with the US Company L-3 was signed for two CN-235s. Korea ordered one C-212 maritime patrol aircraft.
The Spanish Ministry of Defence (MoD) ordered the conversion of six CN-235 military transports into maritime patrol aircraft with FITS mission control. Additionally, two CN-235s with FITS are being modernised for the Irish MoD.
A400M passes industrial milestones
The A400M passed five industrial contractual milestones, including the one shifted from 2005. Airbus produced the first A400M wing ever made almost entirely from composite materials, and the first horizontal tail plane was delivered by EADS CASA to the Final Assembly Lines (FAL).
EADS has conducted an internal technical assessment to validate the current programme status and ensure transparency to the customer. This concluded that the programme was on schedule but highlighted a number of significant challenges. There are currently a total of 192 A400M orders, with 180 from the European launch countries, eight from South Africa and four from Malaysia.
The first of the five A330s for modification into MRTT advanced tanker aircraft with booms, for the Royal Australian Air Force, were received by EADS CASA in Madrid during June 2006. Work started on conversion of the first tanker. The first flight tests of the new refuelling boom were successfully completed. Boom configuration includes fly-by-wire controls and an automatic load alleviation system, offering the boom a larger refuelling envelope and better control. EADS will be at the forefront of flight refuelling technology.
The first CN-235 multi-mission aircraft for the US Coast Guard’s Deepwater programme was delivered. A Lockheed Martin and EADS CASA partnership was awarded a contract for up to 36 aircraft, with the first three aircraft ordered from EADS CASA for medium-range surveillance maritime patrol.
The balance of the Division’s revenues will change over the next few years as the new A400M and A330 MRTT aircraft start to be delivered and future orders are won. While medium and light aircraft will continue to account for a significant percentage of revenues, economic performance will be driven by new aircraft programmes.
There are currently a number of export campaigns underway. Negotiations are being carried out with Saudi Arabia for an order of three MRTT tanker aircraft. The Division expects 2007 will see the AirTanker consortium, of which it is a member, receive an order from the UK government for the Future Strategic Aircraft programme covering 14 A330 MRTTs.
MTA has been selected to supply 50 C-212s for Brazil’s Air Force in an industrial collaboration that will include the establishment of a FAL in Brazil. Contract negotiations could be finalised in 2007.
Teaming with Northrop Grumman, EADS is bidding to supply the US Air Force’s new-generation KC-30 refuelling tanker based on an A330 MRTT with boom. Also in the United States, in partnership with Raytheon, it is proposing the C-295 aircraft for the Joint Cargo Aircraft contract, which is expected to be awarded in 2007.
