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 Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 10.19.17

Airborne 10.16.17

Airborne 10.17.17

Airborne 10.18.17

Airborne 10.19.17

Airborne 10.13.17

Airborne-Unmanned 10.17.17

Airborne-YouTube

AMA 10.19.17

Airborne 10.16.17

Airborne 10.17.17

Airborne 10.18.17

Airborne 10.19.17

Airborne 10.13.17

Airborne-Unmanned 10.17.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

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

RFP: ANN Seeking New Site/Facility For Major Studio Upgrade

It's Official: Aggressive Upgrades For New Airborne Programs WILL Require New Digs It's been in development for years, but we're getting to a point where we think we can pull off s>[...]

AMA Drone Report 10.12.17: NTSB--Drone v Blackhawk, City Drops Reg, DJI Privacy

Also: PassengerDrone, FAA Reauthorization Extension, UAS Pilot Certification, Workhorse Surefly The NTSB is now offering public details of the alleged collision between a hobby dro>[...]

Airborne-Unmanned 10.17.17: Eagles v Drones, DJI AeroScope, Drone Policy

Also: AeroVironment Award, Washington State Patrol, Altavian Nova UAS, Robotaxis The French Military is training four Golden Eagles to attack drones in flight as a way to defend ag>[...]

Airborne 10.18.17: Airbus C Series Deal, Red Bull!, Drone v Airline

Also: Glasair 2 And 3 Sold, Send Solutions, Blue Angels, SSBJ, D8 Airliner, Stage 5 Aircraft, Global Supertanker Airbus SE and Bombardier are to become partners on the C Series air>[...]

Airborne 10.17.17: Waco YMF-5F Flies!, SpaceX Streak, BBJs Rule

Also: Embraer, Aero-Calendar, AeroVironment, Sikorsky Heli's, EASA Singapore, FireFighting UAV, WestJet The amazing craftsman of the Waco Classic Aircraft operation in Michigan hav>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC