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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 06.20.16

Airborne 06.21.16

Airborne 06.22.16

Airborne 06.23.16

Airborne 06.24.16

Airborne Hi-Def On YouTube

Airborne 06.20.16

Airborne 06.21.16

Airborne 06.22.16

Airborne 06.23.16

Airborne 06.24.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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 06.24.16: ADS-B Analysis, NavWorx Price Drop, ALPA v Transport Canada

Also: Porker Of The Month, Aviation BBB?, Super Puma, AirVenture Events, FedEx 767s, Solar Impulse, Sikorsky Flight Safety Foundation has released the study "Benefits Analysis of S>[...]

Aero-News: Quote Of The Day (06.26.16)

"The Team is proud to resume the Blue Angels mission, representing the pride and professionalism of the Navy and Marine Corps, and inspiring a culture of excellence. The Blue Angel>[...]

ANN's Daily Aero-Term (06.26.16): Coupled Approach

Coupled Approach A coupled approach is an instrument approach performed by the aircraft autopilot which is receiving position information and/or steering commands from onboard navi>[...]

ANN's Daily Aero-Linx (06.26.16)

Aero Linx: Aviators Model Code of Conduct Initiative (AMCC) AVIATORS MODEL CODE OF CONDUCT: Innovative tools advancing aviation safety and offering a vision of excellence for aviat>[...]

US Navy Blue Angels Resume Airshow Schedule

Modified Five-Jet Team Returns To Airshow Circuit The U.S. Navy Blue Angels will return to its 2016 demonstration schedule July 2-4 in Traverse City, MI, Commander, Naval Air Force>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC