Announcing its full-year financials in Munich on February 27, Airbus Group said its 2014 results were “better than expected,” with revenues increasing by 5 percent, to €60.7 billion ($68 billion). The group posted a 6.7-percent return on sales, or operating profit margin. It reported a record order book of €857.5 billion ($970 billion), increasing from €680.6 billion in 2013.
Due to “strong demand” CEO Tom Enders announced that Airbus’s production of narrowbody aircraft will increase from 42 to 50 per month beginning in the first quarter of 2017, but he denied that the company was influenced by Boeing’s plan to increase its rate to 52 by 2018. He stressed that the major highlight this year will be to break even on the A380 program after 15 years, including more than seven years since the superjumbo entered service.
Airbus said a €521 million ($582 million) charge for program delays on its military airlifter—the A400M—was to a great degree offset by its divestment of almost 10 percent of its holding in the Dassault Group, which raised €383 million. “We will do another tranche this year depending on market conditions,” said Harald Wilhelm, Airbus Group CFO.
Revenues for Airbus commercial aircraft activities increased by 7 percent, to €42.3 billion ($47 billion), and earnings before interest and tax (EBIT) increased 68 percent, to €2.7 billion ($3 billion). Order intake was just over €150 billion ($170 billion, down 25 percent) though backlog increased by 28 percent to €803.6 billion ($909 billion).
Airbus delivered 629 narrowbodies to customers, plus 139 widebodies, “also a record,” Enders said. It expects overall 2015 deliveries to be “only slightly higher” than last year, he added. Airbus is targeting “15 or 16” deliveries of the A330, which entered service with Qatar Airways at the end of 2014.
The manufacturer delivered 30 A380s and expects to deliver a similar number this year. Asked if the A380 will be re-engined, something airline customers have called for, Enders replied: “Yes, the famous re-engining! Will we re-engine? If we find it makes good business sense, certainly.”
Enders reflected that for commercial aircraft 2014 was “the second best year ever with the order backlog more than 6,300 aircraft, which is why we’ve decided to increase the [narrowbody] production rate to 50 aircraft a month.” Airbus is also studying a narrowbody production increase to 60 aircraft per month “because the demand is there.” Enders added, however, that the A330 production rate will be further reduced to six aircraft per month as the program transitions to the re-engined A330 Neo.
Airbus Helicopters grew its revenues and EBIT slightly, both up 4 percent, to €6.5 billion ($7.4 billion) and €397 million ($449 million), respectively. Order intake was down 5 percent, to €5.5 billion ($6.2 billion), with the order book declining by 2 percent to €12.2 billion ($13.8 billion). The helicopter division plans to unveil its new X4 twin-engine machine at Heli-Expo in Orlando on March 3.