Full-year results for the 2020 financial year revealed by Airbus on Thursday revealed a 29% Slide In Revenue During 2020 Pandemic Year.
Worse than before for Airbus
As expected, the results were worse than the previous year, primarily driven by the COVID-19 pandemic. However, the manufacturer still has a net cash position of €4.3 billion ($5.2 billion).
During the ‘most challenging crisis to hit the aerospace industry’ in 2020, Airbus saw the number of planes being delivered by it fall 34% and expected to deliver the same number of jets in 2021.
Results at a Glance
- 566 commercial aircraft delivered in adverse market environment
- Financials reflect the early business adaptation and cash containment plan
- FY revenues € 49.9 billion; FY EBIT Adjusted € 1.7 billion
- FY EBIT (reported) € -0.5 billion; FY loss per share (reported) € -1.45
- No dividend proposed for 2020
- FY FCF before M&A and customer financing € -6.9 billion
- Net cash position at € 4.3 billion
- 2021 guidance issued
Airbus post a net loss of £980m (€1.13bn) amid a global slump in air travel because of the pandemic. Full year results published on Thursday morning show that revenue fell 29 per cent to £42 billion but Airbus expects to make a profit this year.
Airbus took 268 orders
The world’s largest plane maker delivered 566 commercial jets last year down from 863 in 2019. Airbus took in 268 commercial plane orders, down from 768 the year before. Chief Executive Officer Guillaume Faury said: “The 2020 results demonstrate the resilience of Airbus in the most challenging crisis to hit the aerospace industry.”
Mr. Faury said that he wanted to thank teams for their great achievements in 2020 and acknowledge the strong support of our Helicopters and Defence and Space businesses. “I would also like to thank our customers, suppliers and partners for their loyalty to Airbus. Many uncertainties remain for our industry in 2021 as the pandemic continues to impact lives, economies and societies. We have issued guidance to provide some visibility in a volatile environment,” he said.
Over the longer term, Airbus said its ambition is to lead the development of a sustainable global aerospace industry. It was announced that there would be no 2020 dividend as a result.
🔴 Airbus reports Full-Year (FY) 2020 results
🗞 Press Release: https://t.co/69F8ZEmLFP
💻 Resources: https://t.co/WvwfawiCrQ
📽 Virtual press conference at 0930 CET: https://t.co/F3nWSkAxt7#AirbusResults $AIR pic.twitter.com/tmMSjHd2eE
— Airbus PRESS (@AirbusPRESS) February 18, 2021
The consolidated net loss(2) was € -1,133 million (2019 net loss: € -1,362 million). It includes the financial result of € -620 million (2019: € -275 million). The financial result largely reflects interest results of € -271 million, Repayable Launch Investment re-measurement impact in the other financial result of € -157 million, as well as a net € -149 million related to Dassault Aviation financial instruments. It also includes the impairment of the OneWeb loan, recognised in Q1 2020. The consolidated reported loss per share was € -1.45 (2019: € -1.75).
Consolidated free cash flow before M&A and customer financing amounted to € -6,935 million (2019: € 3,509 million), including the payment of the compliance-related penalties of € -3.6 billion in Q1 2020.
The Q4 2020 free cash flow before M&A and customer financing of € 4.9 billion reflects the solid level of aircraft deliveries in the quarter, the good performance from Helicopters and Defence and Space, as well as a strong focus on working capital management.
Various measures were taken during 2020 to maintain a strong liquidity position while navigating the COVID-19 crisis, including a new € 15.0 billion credit facility. Thanks to its strong credit rating, the Company was able to limit interest expenses to € 0.4 billion for the year and extend the maturities of funding sources by issuing new bonds.
Airbus said the full-year capital expenditure was around € 1.8 billion, down by about € 0.6 billion year-on-year following the prioritisation of projects. Consolidated free cash flow was € -7,362 million (2019: € 3,475 million). The consolidated net cash position was € 4.3 billion on 31 December 2020 (year-end 2019: € 12.5 billion) with a gross cash position of € 21.4 billion (year-end 2019: € 22.7 billion).
Given the global business environment, there will be no dividend proposed for 2020. This decision aims at strengthening the Company’s financial resilience by protecting the net cash position and supporting its ability to adapt as the situation evolves.
As the basis for its 2021 guidance, the Company said it assumes no further disruptions to the world economy, air traffic, the Company’s internal operations, and its ability to deliver products and services. The Company’s 2021 guidance is before M&A.
- On that basis, the Company targets to at least achieve in 2021:
- Same number of commercial aircraft deliveries as in 2020;
- EBIT Adjusted of € 2 billion;
- Breakeven free cash flow before M&A and customer financing.