- Chidozie Uzoezie
COVID-19: Airbus Reports Negative First Quarter Performance
After a solid start to the year, Airbus today reported its First Quarter (Q1) 2020 results which saw a not impressive performance due to the impact of the COVID-19 pandemic.
Consolidated revenues decreased to € 10.6 billion (Q1 2019: € 12.5 billion), reflecting the difficult market environment impacting the commercial aircraft business with 40 less deliveries than a year earlier.
A total of 122 commercial aircraft were delivered (Q1 2019: 162 aircraft), comprising 8 A220s, 96 A320 Family, 4 A330s and 14 A350s.
Airbus Helicopters delivered 47 rotorcraft (Q1 2019: 46 units) with its 19% increase in revenues reflecting the favourable delivery mix and growth in services. Revenues at Airbus Defence and Space were stable year-on-year. One A400M transport aircraft was delivered in the quarter.
Consolidated earnings before interest and taxes (EBIT) was € 79 million (Q1 2019: € 181 million), including Adjustments totalling a net € -202 million. The consolidated net loss(2) was € -481 million (Q1 2019 net income: € 40 million).
The consolidated net cash position was € 3.6 billion on 31 March 2020 (year-end 2019: € 12.5 billion) with a gross cash position of € 18.4 billion (year-end 2019: € 22.7 billion).
Net commercial aircraft orders totalled 290 (Q1 2019: -58 aircraft) with the order backlog comprising 7,650 commercial aircraft as of 31 March 2020. Airbus Helicopters booked 54 net orders (Q1 2019: 66 units).
Airbus Defence and Space’s order intake of € 1.7 billion included military aircraft-related services, new contract wins in telecommunications and in connected intelligence. Also included is the Phase 1A demonstrator contract for Europe’s Future Combat Air Systems programme.
Given the current COVID-19 environment, Airbus had in March 2020, announced various measures to protect its financial liquidity including securing a new € 15 billion credit facility, withdrawing the 2019 dividend proposal and suspending the voluntary top up in pension funding.