EADS Chief Blames Airbus For Plummeting Stock Prices | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 10.17.14 ** HD iPad-Friendly -- Airborne 10.17.14 **
** Airborne 10.15.14 ** HD iPad-Friendly -- Airborne 10.15.14 **
** Airborne 10.13.14 ** HD iPad-Friendly -- Airborne 10.13.14 **

Wed, May 28, 2008

EADS Chief Blames Airbus For Plummeting Stock Prices

Cites Ongoing A380, A400M Problems

EADS CEO Louis Gallois has been asked some tough questions lately about his company's financial performance, corporate restructuring, project delays and outlook going forward. For better or for worse, he's giving equally blunt responses.

Reuters reports the company's stock has fallen 32 percent this year, underperforming French blue-chips by 23 percent, and lagging Boeing by 27 percent. In casting blame on Monday, Gallois threw his company's airliner division under the proverbial Airbus.

"Although we have made significant progress on the development and ramp-up of A380 and A400M there are still significant levels of execution risk," he said. "And the environment is characterized by the weaker and weaker dollar, increasing oil prices and tightened access to credit for airlines."

As ANN reported, in March EADS posted its first quarterly loss in five years, a net loss for 2007 of about $684 million US for 2007.

Gallois also stressed the need for further cuts at Airbus. Plans to cut 10,000 jobs at the European planemaker, as part of the controversial Power8 restructuring program, have stalled on the neverending decline in value of the US dollar.

"The head of Airbus is too big for the legs," Gallois said. "...The market believes that air traffic will disappoint. This is reflected by the performance of the commercial aerospace stocks and in particular EADS."

Citing recent announcements by US carriers like American Airlines -- and a profit warning issued this week by Air France/KLM --  Airbus chief Tom Enders added, "There really are some dark clouds on the horizon for air travel," in comments this week at the Berlin Air Show.

There was also room for hope, however. Gallois (above) predicted that despite the gloomy talk in the markets, EADS will be in a position to increase its shareholder dividend next year.

In newspaper interviews over the weekend, he also made a uniquely European suggestion for more government subsidy of the aerospace industry.

FMI: www.eads.com, www.airbus.com

Advertisement

More News

Klyde Morris (10.20.14)

Klyde Battles The Grammar Psychos!!! FMI: www.klydemorris.com>[...]

Airborne 10.17.14: Enstrom Delivers, Flight School Scandal, NBAA2014

Also: Rare O-46 Rebuild, Valor Unveiled, OK's Anti-Fly-In Airport, FAA Screw-Ups, The first Enstrom Model 480B-G has been delivered to Rick Boswell of New Hampshire with the Garmin>[...]

ANN's Daily Aero-Term (10.20.14): Altostratus

Altostratus This middle cloud genus is composed of water droplets, and sometimes ice crystals, In the mid-latitudes, cloud bases are generally found between 15,000 and 20,000 feet.>[...]

Aero-News: Quote Of The Day (10.20.14)

"I am extremely saddened by the loss of my friend. Peter devoted the last 23 years of his life to this wonderful mission. His faith, dedication, and hard work were something to emu>[...]

AeroSports Update: Sport Performance Aviation Selects Superior XP-320

Superior Air Parts Announces That Sport Performance Aviation Has Selected The XP-320 Engine For The SPA Panther Sport Aircraft Scott Hayes, V.P. Sales and Marketing for Superior Ai>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC