EADS results burdened by Airbus A380 delays

Manufacturing News, Source : TheManufacturer.com
Published : 09 Mar 2007 11:19
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Profits at Airbus’ Franco-German parent EADS were severely dented by losses at its troubled trans-European plane-making business, it emerged today.

While sales growth at EADS was driven to € 39.4 billion (£26.8bn), up from €34.2 billion in 2005, by record deliveries and a 30 per cent increase in defence revenues, a dive in profits to € 399 million (2005: € 2.9bn) was “substantially burdened by the impact of A380 delays”, the company said.

Airbus itself recorded its first ever loss of €572million.

EADS joint CEOs Tom Enders and Louis Gallois said the results emphasized the urgent need to implement the group’s so-called ‘Power8’ overhaul of the Airbus business. “It will take some time but Power8 will make Airbus substantially more integrated and efficient,” they said. “For 2007, our priorities are to drive operational improvements, restore the Group’s credibility and build a leaner and more dynamic EADS.”

Airbus difficulties overshadowed an order intake of 790 aircraft, record deliveries of 434 aircraft, the launch of the A350XWB programme and the successful A380 type certification. Eurocopter had experienced an outstanding year, EADS Astrium benefited from a ramp-up of Ariane 5 rocket production and ballistic missile development and Eurofighter helped defence and security revenues.

Looking forward, EADS said 2007 would see a single-digit decrease in revenues mainly due to the assumed €/US$ exchange rate of 1.30, while profits would remain roughly stable.

Another substantial loss in 2007 is predicted for Airbus, attributable to charges for the restructuring and further costs to support the A380 programme, as well as the impact of the worsening US dollar parity to the Euro.

 

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