Airbus aids EADS success

Citation

(2004), "Airbus aids EADS success", Aircraft Engineering and Aerospace Technology, Vol. 76 No. 4. https://doi.org/10.1108/aeat.2004.12776dab.002

Airbus aids EADS success

Airbus aids EADS success

Airbus's ongoing success has helped parent EADS to a full-year net profit of 152 million (£102 million) – reported to be bigger than expected.

Last year the company, which is 30 per cent owned by DaimlerChrysler and 30 per cent owned by French holding company Sogeade – itself half-owned by the French government – lost 299 million. Operating profit this time was up 8 per cent at 1.543 billion.

EADS, which has dual headquarters in Paris and Munich, raised its forecast for 2004 earnings before interest and tax to 1.8 billion from 1.7 billion. The company plans a net dividend of 0.40 a share, up 0.10 on last time.

The result underlines the success of the company, under joint chief executives Philippe Camus and Rainer Hertrich, has been enjoying.

The newest edition to the Airbus family – A380, has 129 orders on the books, with options on a further 75, although the company says it needs 250 orders to break even. The plane is expected to enter service in 2006.

The company has also reports that it has scored some hits with its military division, notably the British order for EADS' airborne refuelling tankers. EADS beat a rival bid by Boeing and BAE Systems.

The company also hopes to break further into the US market, the company's US defence sales currently worth about £200 million a year.