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The Division’s strong order book contributed to achieving EADS’ goal of a better balance between commercial aerospace and defence revenues.
|
(€m) |
2007 |
2006 |
Variation |
|
|
|
|
|
|
Revenues |
5,465 |
5,864 |
-7% |
|
340 |
348 |
-2% | |
|
Order intake |
7,540 |
5,191 |
+45% |
|
Order book |
17,886 |
17,570 |
+2% |
MBDA consolidated at 37.5% in 2007, compared with 50% in 2006; figures of 2006 are not restated; to achieve a comparable basis, the following impacts of the consolidation change on 2006 figures have to be taken into account: € - 418 million on Financial Year (FY) 2006 revenues, € -30 million on FY 2006 EBIT, € -329 million on FY 2006 Order intake, € -1,691 million on FY 2006 0rder book.
Defence & Security (DS) made solid progress, contributing to EADS’ goals by growing its order book and furthering its strategic aims. Strong orders came from both defence and security activities, including Eurofighter, EuroHawk, avionics, communications and global security. Progress was made in potential high growth areas, such as Lead Systems Integration and Unmanned Aerial Vehicles (UAVs). Management initiatives reduced structural costs and increased efficiency.
For 2007, the Division’s EBIT of € 340 million is above last year’s level (€ 318 million in 2006, restated to reflect MBDA consolidation at 37.5% rather than 50 %). Revenues remained stable at € 5.5 billion (€ 5.4 billion in 2006, restated).
The order book expanded to € 17.9 billion (€ 15.9 billion in 2006, restated). Notable contributors were Saudi Arabia’s order for 72 Eurofighter planes, signed with BAE Systems, and more than 40 new Professional Mobile Radio (PMR) contract wins.
The first tranche of the Eurofighter, the high-performance multi-role combat aircraft, is almost completed (141 out of 148 aircraft were already delivered). Final assembly of the first Tranche 2 aircraft has begun, with18 in advanced final assembly at the end of 2007.
Eurofighter’s Tranche 2 version passed important milestones. The Eurofighter consortium had delivered 141 Tranche 1 aircraft out of 148 at the end of 2007, with the rest in final assembly. Saudi Arabia’s is the second export order, following Austria’s.
MBDA confirmed its position as a world-leading missile systems company with sales of more than € 3 billion. Export orders for ground-based defence and anti-tank missiles came from the Middle East and elsewhere. Production of Storm Shadow, MICA, Brimstone, Aster, Rapier and Taurus contributed substantial revenues.
Progressing in high growth sectors
Secure Networks’ orders exceeded those for 2006, which was already a strong year. Notable contracts were received from France’s fire and emergency services, as well as from China. Secure Networks delivered on-time and on-quality to Hungary and Germany, among others.
The Division won significant contracts as a security Lead Systems Integrator. Qatar contracted EADS to build its National Security Shield System. In the U.K., DS was awarded the building of a network of fire and rescue control systems. In Tangiers (Morocco), it will provide an integrated maritime security system.
UAVs also made progress. Germany awarded a contract to EuroHawk GmbH, a joint venture with Northrop Grumman, for the development, testing and support of the EuroHawk system. And the German Defence Ministry contracted DS to analyse and refine enabling technologies and operating concepts for the Agile 
UAV. Germany, France and Spain tasked EADS to evaluate risk reduction for a modular reconnaissance and surveillance UAV.
Improving operational performance
Better business processes enhanced operational performance. Initiatives such as shared services, centralisation of certain functions and head office improvements reduced costs. The new Elancourt site in Paris brought together all eight previous French sites, and the Military Air Systems centre in Manching (Germany) began to be consolidated. MBDA centralised activities in Paris to Plessis Robinson and made Schrobenhausen its German centre of competence.
The Division has a positive outlook due to its substantial forward order book, strong position in platforms, capabilities in high growth areas and ongoing efficiency initiatives.
There are a number of Eurofighter export campaigns currently underway across Europe, the Middle East and Asia. Business areas such as secure networks, global security and UAVs are gathering momentum. Operational improvements are reducing risks while opportunities for further cost reductions are being sought.
Over time, all of these factors should continue the trend of rising revenues, margins and EBIT. The Division is central to EADS’ goal of achieving a better balance between commercial aerospace and defence and security revenues.
