Mixed signals from EADS
Published 9:00 pm Tuesday, March 7, 2006
Airbus’s parent company reported increased year-over-year profits, but a fourth-quater fall-off, and warned that there could be troubles ahead, the Associated Press reported. http://www.washingtonpost.com/wp-dyn/content/article/2006/03/08/AR2006030800384.html
Key Quote: “Joint CEOs Noel Forgeard and Thomas Enders said EADS is benefiting from an aerospace upturn. ‘We must, however, remain mindful of the challenges ahead: the weak dollar, the revived competition in the commercial aircraft arena, the ramp-up of new programs and stretched resources,’ they said in a statement.”
Financial Times reported http://msnbc.msn.com/id/11724928/ that EADS’ operating profit increased an impressive 17 percent, but there is still reason for concern.
Key Quote: “Of greater concern for EADS for the future, however, was the fact that Boeing won 55 per cent of new commercial aircraft orders by value last year, reversing the trend of recent years, and established clear superiority in the most lucrative segment for widebody, longhaul aircraft. Airbus won most of its orders in the segment for single aisle shorthaul aircraft.”
At the same time, EADS is looking for improved profits in 2006, the BBC reported. http://news.bbc.co.uk/2/hi/business/4785490.stm
Key Quote: “The company said it expected revenues of more than 37bn euros for 2006, with Airbus deliveries up by at least 10%. … ‘We believe the record order book and vibrant customer demand point to sustained high deliveries in Airbus,’ the company’s chief executives, Thomas Enders and Noel Forgeard said in a statement.”
And Bloomberg News http://quote.bloomberg.com/apps/news?pid=10000006&sid=a2.uEoOm.n.c&refer=home noted that Airbus is considering bumping up production rates, particularly on A320s.
Key Quote: “Airbus may deliver as many as 430 aircraft this year, Forgeard said in an interview. The company previously had forecast deliveries of about 415 planes compared with last year’s total of 378 aircraft. … Forgeard also said Airbus may increase the production rate of single-aisle planes to 34 a month this from 30 last year to meet customers’ demands for new aircraft. The company previously forecast a production rate of 32 planes.”
In other Airbus news today, Team Toulouse —
* Said it remains on track to deliver the first A380 this year. http://www.forbes.com/home/feeds/afx/2006/03/08/afx2579202.html
Key Quote: “‘We will deliver two planes at the end of 2006. It is a challenge, but it will be done,’ said Noel Forgeard, co-chief executive of EADS, the parent company of Airbus, at a press conference following EADS’ release of 2005 earnings.”
* And said it will take a few more months to decide on a site for a proposed Chinese assembly line. http://www.forbes.com/markets/feeds/afx/2006/03/08/afx2579125.html
Key Quote: “Speaking at a press conference following the release of EADS’ full-year results, the company’s co-CEO Noel Forgeard said that this did not represent a delay, but a ‘precaution’ as this is a ‘very important project, and we must find a general agreement with China.’”
The Economic Times in India went into more detail about the China proposal. http://economictimes.indiatimes.com/articleshow/1439234.cms
Key Quote: “Tom Enders, joint chief executive of EADS, Airbus’s parent company, said the plans for a new assembly line were driven as much by necessity as by a desire to demonstrate a commitment to the Chinese.”
