EADS upgrades orders and deliveries outlook, A350 programme costs may increase

EADS provided (14-Nov-2013) the following outlook, making several adjustments to its full year guidance. As the basis for its 2013 guidance, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions:

• Commercial aircraft orders: Above 1200 aircraft (raised from 1000 aircraft);
• Commercial aircraft deliveries: Up to 620 aircraft (raised form 600-610 aircraft);
• Revenues: Assumed to see moderate growth in 2013, due to lower A380 deliveries and assuming an exchange rate of EUR1 = USD1.35;
• EBIT: By stretching the 2012 underlying margin improvement, in 2013 EADS targets an EBIT before one-off of EUR3.5 billion and an earnings per share before one-off of around EUR2.50 (FY2012: EUR2.24), prior to the share buyback;
• One-offs: Excluding the wing rib feet A380 impact of around EUR85 million in 2013 based on 25 deliveries, the one-offs should be limited to potential charges on the A350 XWB programme, foreign exchange effects linked to the PDP mismatch and balance sheet revaluation. A350 XWB programme: "Remains challenging" with any schedule change potentially leading to an increasingly higher impact on provisions. An assessment of the need for potential one-off costs from the creation of Airbus Defence and Space will be conducted in 4Q2013;
• Free cash flow: After customer financing and before acquisitions is now expected to be negative at around EUR1.5 billion. This reflects the company's investment into production ramp-up and development programmes as well as recent government customer budgetary constraints. [more - original PR]