EADS Reports Significant Gains for First Half of 2012
Enlarge image The superjumbo A380 (© dpa/pa) Despite costly problems at the top of its product line, the European Aeronautic Defence and Space Company (EADS) reported increased profits: sales rose in the first half of the year by 14 percent to 24.9 billion euros. Net income rose to 594 million euros, as compared to a significantly lower 109 million euros during the same period last year, the company announced on Friday from its headquarters in the Netherlands.
The EADS Group, which includes subsidiaries such as Airbus, Eurocopter and the rocket manufacturer Astrium, increased its forecast for the full year and now expects sales growth of ten percent and significantly increased profits. “The Group achieved good results in the first six months, and our financial figures confirm the continued momentum,” said new EADS CEO Tom Enders. The German executive took over the helm of the aerospace consortium in early June and has expressed his vision of increasing long-term profits and reducing the gap between it and its main rival, the American aerospace company Boeing.
But not all the news is rosy, especially at Airbus, by far the EADS group’s most important subsidiary. Delivery of the long-range A350 has been shifted once again, and is now slated to take place in the second half of 2014. The company posted 124 million euros in reserves for the model. Regarding the A380, the largest civilian model, expenses increased due to technical problems on the wings, to some 181 million euros.
Customers do not appear to be deterred by the bad news: this year, Airbus expects to deliver about 580 commercial aircraft, including 30 of the A380s built in the northern German city of Hamburg. The number of orders is expected to increase to a total of 600-650 aircraft, surpassing the number of deliveries.
However, Enders said he had some “slight doubt” about whether the company could indeed deliver the promised 30 A380 aircraft. “We have a problem with the wings,” which also hampers orders, he explained. The German executive announced that the Airbus A380 will henceforth manufacture the wings completely from metal, as in conventional aircraft, rather than from carbon fiber.