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Astrium achieved solid profitable growth in a more favourable business environment. A higher order book level ensures further revenue increase in the years ahead.
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|
(€m) |
2006 |
2005 |
Variation |
|
|
|
|
|
|
Revenues |
3,212 |
2,698 |
19% |
|
130 |
58 |
124% | |
|
Order intake |
4,354 |
2,322 |
88% |
|
Order book |
12,263 |
10,931 |
12% |
2006 was a good year for Astrium’s three lines of products: launchers, satellites and services. The military communications satellite services business line grew revenues and won new contracts. Margins expanded due to both substantial cost reduction and the Division’s strong position as prime contractor for much of Europe’s space industry.
Revenues increased to €3.2 billion (€2.7 billion in 2005), with all three Business Units contributing. EBIT more than doubled to €130 million from €58 million in 2005, as cost improvements and firm pricing boosted margins.
Both launchers and satellites captured substantial slices of their respective markets. Consequently, the order book increased to €12.3 billion at year-end, compared with €10.9 billion at the end of 2005.
In order to present its main customers in Europe and elsewhere with a united and more visible brand, the Division changed its name from EADS SPACE to EADS Astrium. This branding initiative was not accompanied by any operational management changes.
Building on the success of recent cost and process improvement measures, further programmes were introduced. Specific initiatives were started to pool resources, trigger better services to customers and reduce costs. A further initiative aims to increase Research and Development spending in order to pave the way to further growth. Beyond this, there are additional on-going efficiency programmes with milestones and targets to be achieved.
Ariane 5 reliability
The Astrium Space Transportation Business Unit holds a 30.5% stake in Arianespace, which confirmed its position as the number one satellite launch services provider worldwide. The Ariane 5 launcher’s record for reliability, at a time when competing launchers have experienced accidents, led it to win 12 orders, representing approximately 45% of the open market.
Other highlights within Astrium Space Transportation included delivery of the Columbus space laboratory to the European Space Agency (
ESA). This is the European research module for the International Space Station, a combined US and European governmental project due for launch in late 2007. Additionally, the M51 ballistic missile ordered by the Délégation Générale pour l’Armement, France’s defence procurement agency, had its first fully successful flight.
Satellite upsurge
The Astrium Satellites Business Unit won a creditable share of new satellite orders in a year when there was a modest upsurge in orders globally. There were 27 commercial orders worldwide, compared with 24 in 2005. Astrium won seven of these campaigns, as well as the two main ESA orders.
The newest of the three Business Units, Services, continued to expand its operations of secure military communications satellites. Germany’s Ministry of Defence formally ordered the Satcom BW system, and the first Skynet 5 satellite, for the UK Ministry of Defence, is ready for launch.
Astrium entered 2007 with its largest ever order book and the benefits of both technical and commercial innovation over the past five years beginning to be experienced, along with the full effect of five years of industrial restructuring. Both the Ariane 5 ECA ten-ton satellite launcher and Eurostar 3000 modular satellite have recently entered production and have proved their reliability in the market place. Astrium Services has also proved the validity of its business model of building and operating military communications satellites.
The Division is maintaining its capacity for innovation by increasing Research and Development spending. Technical support contracts will sustain technical capabilities in the launcher and missiles areas.
Meanwhile, improvement initiatives to reduce costs and improve technical processes will bring further progress.
The positive trend in revenues and EBIT is expected to continue with further increases in profitability.
