...Improving Financial Profile: Airbus Group NV improved its margins in H114 chiefly as a result of operational improvements. The funds from operation (FFO) margin consequently rose to 8.2% in H114, from 6.7% in H113, while the EBITDAR margin improved to 10.6%, from 9.6%. Fitch Ratings expects Airbus to continue to improve its FFO margin to over 9% for 2014 and towards 10% in the medium term, by improving its programme execution (notably on the upcoming A350XWB), better cost discipline and the rising profitability of the A380. Free cash flow for the last 12 months (LTM) to 30 June 2014 was minus EUR415m (from minus EUR1.5bn in 2013) as a result of the working capital built up related to the A350 and A320NEO programmes, which should be reversed as these aircraft start to be delivered from late 2014 and 2015, respectively. In the medium term, Fitch expects Airbus to generate FCF of over 3% on a sustainable basis. Programme Performance Key: Cost overruns and ramp-up issues surrounding large programmes...
