Consolidated Revenues
Consolidated revenues decreased slightly by 0.8% in 2007 to €39.1 billion, as compared to €39.4 billion for 2006. A decrease in revenues at the MTA Division and DS Division (primarily reflecting the change of proportionate consolidation effect relating to MBDA) was nearly offset by an increase at other divisions in 2007.
Set forth below is a breakdown of EADS’ consolidated revenues by division for the past three years.
| |||||||
|
(in €m) |
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 | ||||
|
|
|
|
| ||||
|
Airbus |
25,216 |
25,190 |
22,179 | ||||
|
Military Transport Aircraft |
1,140 |
2,200 |
763 | ||||
|
Eurocopter |
4,172 |
3,803 |
3,211 | ||||
|
Defence & Security(1) |
5,465 |
5,864 |
5,636 | ||||
|
Astrium |
3,550 |
3,212 |
2,698 | ||||
|
Total Divisional Revenues |
39,543 |
40,269 |
34,487 | ||||
|
Other Businesses |
1,269 |
1,257 |
1,155 | ||||
|
HQ/Consolidation(2) |
(1,689) |
(2,092) |
(1,436) | ||||
|
Total |
39,123 |
39,434 |
34,206 | ||||
Airbus
Set forth below is a breakdown of Airbus’ deliveries by aircraft type for the past three years.
| |||||
|
Number of aircraft |
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 | ||
|
|
|
|
| ||
|
Single Aisle |
367 |
339 |
289 | ||
|
Widebody |
6 |
9 |
9 | ||
|
Long-Range |
79 |
86(1) |
80 | ||
|
Large Aircraft |
1 |
- |
- | ||
|
Total |
453 |
434 |
378 | ||
2007 compared to 2006. Airbus’ consolidated revenues remained stable, amounting to €25.2 billion for 2006 and 2007. Aircraft deliveries recognised in revenues increased (453 in 2007 as compared to 434 in 2006), driven by deliveries of single-aisle A318/A319/A320/A321 aircraft. Airbus delivered 28 more aircraft of this type in 2007 (367 aircraft) than in the previous year. Deliveries of
long-range aircraft decreased slightly from 86 in 2006 to 79 in 2007.
Offsetting this positive volume increase was a decrease in revenue recognition on the A400M programme, as well as an approximate €(1.1) billion negative impact resulting primarily from the continued decline of the hedge rates used to convert payments upon deliveries for the portion of such payments which was hedged. For a discussion of the impact of exchange rate variations on EADS’ results of operations, see “Critical Accounting Considerations, Policies and Estimates — Accounting for Hedged Foreign Exchange Transactions in the Financial Statements”, “Critical Accounting Considerations, Policies and Estimates — Foreign Currency Translation”, “Hedging Activities — Foreign Exchange Rates” and “Financial Market Risks — Exposure to Foreign Currencies”.
2006 compared to 2005. Airbus’ consolidated revenues increased by 13.6%, from €22.2 billion for 2005 to €25.2 billion for 2006, reflecting primarily the increase in aircraft deliveries recognized in revenues (434 in 2006 as compared to 378 in 2005). As in 2005, most of the deliveries in 2006 were for single-aisle A319/A320/A321 aircraft. Airbus delivered 50 more aircraft of this type in 2006 (339 aircraft) than in the previous year. Deliveries of long-range aircraft increased from 80 in 2005 to 86 in 2006.
Offsetting these positive factors was an approximate €(720) million negative impact resulting primarily from the continued decline of the hedge rates used to convert payments upon deliveries for the portion of such payments which was hedged, which amounted to negative €(820) million, and was itself partially offset by the €100 million positive impact of the revaluation of certain assets and liabilities and other currency translation adjustments.
Military Transport Aircraft
Set forth below is a breakdown of the MTA Division’s new aircraft deliveries by aircraft type for the past three years.
|
Number of aircraft |
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 |
|
|
|
|
|
|
CN-235 |
7 |
1 |
1 |
|
C-212 |
- |
- |
2 |
|
C-295 |
7 |
7 |
10 |
|
P-3 |
1 |
- |
- |
|
Total |
15 |
8 |
13 |
For 2007, consolidated revenues of the MTA Division decreased by 48.2%, from €2.2 billion for 2006 to €1.1 billion for 2007. The large decrease is primarily due to the completion of fewer milestones on the A400M programme (two in 2007 as compared to five in 2006 (including the shift of revenue recognition for one milestone to the first quarter of 2006)).
For 2006, consolidated revenues of the MTA Division increased by 188%, from €0.8 billion for 2005 to €2.2 billion for 2006. The strong increase is primarily related to revenue recognition for the completion of five milestones under the A400M programme in 2006 (including the €0.5 billion impact of the shift of revenue recognition for one milestone to the first quarter of 2006), compared to only one in 2006. Revenues also increased due to the
ramp-up of the Multi Role Tanker Transport (MRTT) programme.
Eurocopter
Set forth below is a breakdown of the Eurocopter Division’s deliveries by product type for the past three years.
|
Number of aircraft |
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 |
|
|
|
|
|
|
Tiger |
10 |
9 |
12 |
|
Light |
275 |
217 |
183 |
|
Medium |
172 |
134 |
121 |
|
Heavy |
31 |
21 |
18 |
|
of which NH90 |
8 |
3 |
0 |
|
Total |
488 |
381 |
334 |
For 2007, consolidated revenues of the Eurocopter Division increased by 9.7%, from €3.8 billion for 2006 to €4.2 billion for 2007, primarily reflecting an overall increase in helicopter deliveries from 381 in 2006 to 488 in 2007, in particular in the civil segment, as well as growth in customer services.
For 2006, consolidated revenues of the Eurocopter Division increased by 18.4%, from €3.2 billion for 2005 to €3.8 billion for 2006, primarily reflecting ramp-up of military programmes, growth in customer services and an overall increase in helicopter deliveries from 334 in 2005 to 381 in 2006.
Defence & Security
For 2007, consolidated revenues of the DS Division decreased by 6.8%, from €5.9 billion for 2006 to €5.5 billion for 2007, primarily reflecting the change of proportionate consolidation effect (€(0.4) million) relating to MBDA and a decrease in stand-off missile activity. Partially offsetting this decrease was the ramp-up in Eurofighter production and growth in security revenues. At comparable perimeter, the DS Division’s revenues increased slightly by 0.3% in 2007 compared to 2006.
For 2006, consolidated revenues of the DS Division increased by 4.0%, from €5.6 billion for 2005 to €5.9 billion for 2006, primarily reflecting the
ramp-up in Eurofighter production and growth in the digital professional mobile radio (PMR) business, acquired from Nokia in 2005. Partially offsetting this increase was the partial lack of contribution to 2006 consolidated revenues from LFK GmbH, following its sale to MBDA in early 2006.
Astrium
Set forth below is a breakdown of Astrium’s deliveries of commercial telecommunications satellites for the past three years.
|
|
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 |
|
|
|
|
|
|
Commercial |
2 |
4 |
4 |
For 2007, consolidated revenues of Astrium increased by 10.5%, from €3.2 billion for 2006 to €3.6 billion for 2007. The increase was primarily due to an increase in revenues from Paradigm services, Ariane 5 production and ballistic missile deliveries.
For 2006, consolidated revenues of Astrium increased by 19.1%, from €2.7 billion for 2005 to €3.2 billion for 2006. The increase was primarily due to the continued ramp-up of Ariane 5 production, increased M51 ballistic missile activity, an increase in revenues from the Paradigm business at Astrium Services and the first revenues recorded in connection with the Satcom BW military communication system.
