EADS does worse than expected
European aerospace group EADS reported a wider than expected net loss of 446 million euros, but said it had turned the corner on the industrial problems recently gripping the company.
The loss compared with a slender 99 million euro profit in 2006 and market forecasts of a 329 million euro loss in 2007.
The Airbus parent, hit by delays to its A380 superjumbo and a weak dollar, yesterday also posted below-consensus operating profit of 52 million euros, down from 399 million euros in 2006.
Group revenues dipped to 39.1 billion euros in 2007 from 39.434 billion in 2006, due mainly to the weaker US currency.
EADS said it expected a recovery in 2008 and predicted operating profit of 1.8 billion euros and revenues topping 40 billion euros, based on a euro at $1.45.
"Improvements across the board and our recent success on the US defense market point to a promising start into 2008," Chief Executive Louis Gallois said.
EADS, also facing delays to its A400M military heavylifter and naval NH90 helicopter, said it did not expect a "further material deterioration" in its main industrial programs.
It proposed a stable dividend of 12 euro cents a share.
The European company's earnings were impacted by the second annual loss in a row at Airbus after production delays resulted in penalties to airlines and restructuring charges.
Agencies
(China Daily 03/12/2008 page16)
