EADS Does Better In Second Quarter | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.21.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.21.14 **
** Airborne 07.18.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.18.14 **
** Airborne 07.16.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.16.14 **

Thu, Jul 31, 2008

EADS Does Better In Second Quarter

But Net Income Below Analysts' Estimates

European Aeronautic, Defense & Space Co. reported second-quarter earnings that bested its performance last year at this time, but still fell short of what analysts had estimated.

Bloomberg reports net income at EADS increased to $183 million, up from $126 million in the second quarter of 2007. That works out to 15 cents per share... far short of predictions of as much as $603 million in Q2 2008 earnings from some analysts.

Much of the blame for the sub-par performance falls on the Airbus A380. EADS took a $1.11 billion quarterly hit on the plane, which suffered a 22-month delay in reaching production.

The weak performance of the US dollar relative to the euro slashed another $1 billion from the balance sheet. Though its planes are priced in dollars, most of the manufacturing costs are billed in euros.

"To maintain competitiveness, EADS has to tackle the ongoing US dollar weakness," said EADS chief executive Louis Gallois, who also vowed to cut costs by another $1 billion euros by 2010, on top of the 2.1 billion euros already proposed under the controversial Power8 restructuring program. Gallois didn't go into details about how those savings would be accomplished.

On the positive side, EADS delivered more aircraft in the second quarter this year than last, with sales rising five percent to $15.3 billion. EADS also says Power8 is "ahead of schedule... Airbus has made considerable progress in overhead reductions. The group-wide selection of 28 preferred suppliers of engineering services out of an exiting pool of 2,000 marked a significant step toward implement a global sourcing strategy."

But many investors say EADS must do more than trim its overhead. "They have to answer to how they'll find additional savings beyond what's already planned to help them cope with the weak dollar," said Cominvest Asset Management fund manager Klaus Breil ahead of the EADS announcement. "By my calculation, they need another 2.5 billion euros in savings" in order to compete with American rival Boeing.

At least EADS may take some comfort in knowing that Boeing, too, posted earnings for the quarter that disappointed analysts.

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

Advertisement

More News

Airborne 07.21.14: Koontz' Barber Award, ESA Spaceplane, Model Flyers Fight FAA

Also: Boeing's 787-9 Demo, Hartzell's TBM Wonder-Prop, More Santa Monica Maneuvering, Garmin Global Pilot, Even more TSA Stupidity Greg Koontz has been named the recipient of this >[...]

Airborne 07.18.14: MH17 Shootdown Tragedy, ForeFlight Update, Honoring Apollo 11

Also: UK To OSH--By Microlight, On The Eve of Oshkosh 2014, FAA OKs SpaceX TX Launch Site, Extra-Capacity Q400 NextGen Details of the shoot down of MH17 are changing rapidly and ve>[...]

FAA Grants Re-Issues Hawker Beechcraft STC To Flyht

Covers AFIRS for 700/800/900 Models The FAA has granted a re-issued a Supplemental Type Certificate (STC) for the Hawker Beechcraft 700/800/900 model aircraft to Flyht Aerospace So>[...]

OSH2013, Day One, Revisited: ICON, Pelton, Cessna, SubSonex, BendixKing

Also: Jam-Packed Opening Day Promises That "This Isn't Over" in EAA v FAA Fight ICON Aircraft has been granted a waiver by the FAA to allow a maximum gross takeoff weight to sixtee>[...]

ANN's Daily Aero-Linx (07.22.14)

Diamond Aviators Association The Diamond Aviators Association (the DAA) is a membership organization established to educate, promote the safety of, and support the owners and pilot>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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