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Following several years of innovation and efficiency improvement, Astrium’s strong competitive position is shown by its full order book and rising 
EBIT.
|
(€m) |
2007 |
2006 |
Variation |
|
|
|
|
|
|
Revenues |
3,550 |
3,212 |
+11% |
|
EBIT |
174 |
130 |
+34% |
|
Order intake |
4,492 |
4,354 |
+3% |
|
Order book |
12,895 |
12,263 |
+5% |
Astrium achieved a stronger financial performance for the third successive year, with contributions from all three Business Units. Services passed key milestones in its military secure satellite communication projects and expanded its activities. In Space Transportation, the Arianespace satellite launcher business captured the highest number of orders in the market. Satellites also won a significant share of its market, becoming number one worldwide for Telecom.
EBIT rose to € 174 million (€ 130 million in 2006) and revenues grew a double digit to € 3.6 billion (€ 3.2 billion in 2006). Significantly, the EBIT margin continued the progressive expansion of the past three years, attaining a level of approximately 5% compared with just 4% in 2005. An order book of € 12.9 billion at year end secures approximately three years’ activity.
2007’s level of profitability follows several years of investments in innovation and efficiency improvement. Additionally, fast growth in the Services Business Unit has boosted profitability.
Expanding the secure communications footprint
Within Services, the Paradigm business’ landmark Skynet 5 project made important progress, with the launch of two out of the three contracted secure telecommunications satellites. This will allow EADS to provide communication services for the U.K. Ministry of Defence from 2008 with the new Skynet 5 network. The Business Unit’s activities expanded with the acquisition of GPT, a Saudi Arabian company providing secure communications to the Kingdom’s National Guard.
During 2007, Astrium manufactured six of the powerful Ariane 5 ten-tonnes satellite launchers and won more than 50% of the launcher market.
The Space Transportation Business Unit had a strong year. Arianespace, the satellite launching company of which EADS owns 30.5%, gained from its reliability and flexibility and won more than 50 % of new orders. The Business Unit manufactured six of the powerful Ariane 5 ten-tonnes satellite launchers during the year, and Arianespace signed a preliminary order for Astrium to deliver 35 Ariane 5 from 2010. Additionally, France’s new M51 nuclear missile had a successful second test flight.
Space Transportation’s contribution to the International Space Station made significant progress. Columbus, the European space laboratory and the unmanned Automated Transfer Vehicle (ATV) were successfully launched in 2008. Astrium was prime contractor on both of these projects.
Winning commercial satellite market share
The Satellite Business Unit grew its market share, winning six commercial telecommunications satellites out of the 21 awarded globally. Additionally, the Satellite Communications Company “Mubadala” from Abu Dhabi contracted Astrium and Thales Alenia Space jointly to build two communications satellites, with a firm order expected in 2008. This made Astrium the world leader for Telecom in 2007.
Galileo, the planned European satellite navigation system, was reorganised and is now back on track.
At the end of 2007, all three Astrium Business Units have a strong outlook. The order book secures more than three years’ activity, with the businesses all having good competitive positions in their markets.
After a period of investment, as well as both technical and commercial innovation, Astrium is now collecting its reward. Both the Ariane 5 launcher and Eurostar 3000 modular satellite are technically mature. Furthermore, the Services business model has now proved itself and is contributing to the improving financial performance.
Internally, the Division will undertake a number of specific initiatives in 2008 to improve economic efficiency, technical capabilities and product innovation.
As yet there are no signs of economic weakness impacting Astrium’s markets, revenues and EBIT should continue their expansion during 2008. The EBIT margin should also continue to climb.
