Business

March 1, 2013

Airbus parent EADS sees fourth quarter earnings halve

Airbus parent company EADS NV posted a 47 percent drop in fourth-quarter net profit Feb. 27 after taking costly charges at its helicopter and defense electronics divisions.

The aerospace giant recorded a (euro) 325 million ($425 million) net profit in the October-December period, down from the previous year’s (euro) 612 million. But for the full year, its net earnings were up 19 percent at (euro) 1.23 billion from (euro) 1.03 billion in 2011.

“There’s still some way to go to meet our profitability targets,” said chief executive Tom Enders.

Revenues rose 17 percent during the fourth quarter to (euro) 19.22 billion, with the core Airbus division posting a 21 percent increase to almost (euro) 13 billion.

Investors welcomed the figures, pushing EADS shares up 6.7 percent to (euro) 37.20 on the NYSE Euronext exchange in Paris.

EADS took a (euro) 198 million hit during the quarter at its defense electronics contractor Cassidian, in part reflecting restructuring costs. Renegotiating contracts with government customers resulted in a (euro) 100 million charge at helicopter maker Eurocopter.

But the company’s core business, aircraft maker Airbus, posted a 36 percent increase in operating profit during the final three months, to (euro) 393 million from (euro) 289 million in 2011. Of that, orders for civilian aircraft brought in (euro) 309 million while military planes garnered (euro) 85 million during the quarter.

Spaceflight division Astrium reported operating profits of (euro) 121 million, an increase of 19 percent from the same period the previous year.

EADS said it expects to sell more commercial aircraft – about 700 – in 2013. Revenues will grow modestly, it said, but results will be affected by stuttering sales of the giant A380, which has suffered problems with its wings.

“We would love to sell more of the big birds,” said Enders. “We need to sell more, and we will.”

Another headache for Airbus are the production delays for its new A350 Extra Wide Body model – intended to challenge Boeing’s 787 “Dreamliner.” The 787 program has itself run into difficulties with the entire fleet grounded due to problems with its lithium batteries. Enders was diplomatic about his rival’s woes, saying there was “definitely no schadenfreude” about the 787′s grounding.

In its earnings report EADS repeated its warning that the A350 XWB program “remains challenging.”

“Any schedule change could lead to increasingly higher impact on provisions,” the company said.

EADS also said it was pushing back delivery of the first A400 M military transport planes from the first to the second quarter of the year.

With defense spending being cut in many industrialized countries, Enders said EADS was satisfied with the current share of defense in its business.

“Maybe it’s not a bad time to have a smaller rather than larger defense business,” he told reporters in Berlin, adding that the company planned to look forward after its failed bid to merge with Britain’s BAE Systems last year.

Investors had also expected to receive an update Feb. 28 on the company’s internal probe into allegations of bribery in the sale of fighter jets to Austria.

Enders said the results of the investigation – which runs parallel to a probe by Austrian authorities – would be presented at a later date as its scope had been widened.

“It’s too early to jump to any conclusions,” he said. But the company isn’t currently making any provisions for legal repercussions in the case. “I have no reason to assume that employees of the company have engaged in misconduct or any criminal behavior.”

The company said it is inviting shareholders to an extraordinary meeting March 27 to approve its new governance structure and a share buyback program for up to 15 percent of its stock. EADS last year announced sweeping governance changes that will see influence by state shareholders France and Germany shrink.

The company board is proposing a (euro) 0.60 increase in dividend at its annual general meeting in June.

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines July 28, 2014

News: U.S. has lost track of weapons given to Afghanistan - The United States supplied almost three quarter of a million weapons to Afghanistan’s army and police since 2004, but the military cannot track where many of those arms have gone, a new report found. Bill to improve VA has $17 billion price tag - A bipartisan...
 
 

News Briefs July 28, 2014

Marines seek authorization for dolphin deaths The Marine Corps is asking for a five-year authorization from the National Marine Fisheries Service for incidental deaths of bottlenose dolphins during training exercises at a bombing and target range. The Sun Journal of New Bern, N.C., reports that Connie Barclay of the National Oceanic and Atmospheric Administration says...
 
 
Army photograph by David Vergun

Senior leaders explain Army’s drawdown plan

Army photograph by David Vergun No commander is happy when notified that a soldier from his or her command has been identified for early separation. But commanders personally notify those Soldiers and ensure participation in th...
 

 

Northrop Grumman awarded mission support services contract

The U.S. Army awarded Northrop Grumman a cost-plus-fixed-fee contract, with a potential value of $205 million, to continue providing mission logistics services in support of combat brigades training at the National Training Center in Fort Irwin, Calif. The contract covers one base year and two one-year options. Support will include the full range of mission...
 
 
Lockheed Martin photograph by Beth Groom

F-35 Rollout Marks U.S.-Australia Partnership Milestone

Lockheed Martin photograph by Beth Groom Royal Australian Air Force Air Marshal Geoff Brown delivers his remarks at the roll out ceremony for Australia’s first F-35. The official rollout of the first two F-35 Lightning II...
 
 
NASA/JPL-Caltech image

NASA’s Mars spacecraft maneuvers to prepare for close comet flyby

NASA/JPL-Caltech image This graphic depicts the orbit of comet C/2013 A1 Siding Spring as it swings around the sun in 2014. On Oct. 19, the comet will have a very close pass at Mars. Its nucleus will miss Mars by about 82,000 m...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>