EADS sees difficult 2011, improvement from 2012
The chief finance officer at European aerospace group EADS warned Thursday that the company would face pressures on profitability next year but said the situation should improve from 2012.
The strong euro plus an increase in research and development spending "mean that 2011 will also be demanding," Hans Peter Ring said in a letter shareholders.
"Looking to 2012 and beyond, however, we see substantial improvement potential, provided we execute on new programmes according to our plan.
"Better pricing and volumes and continued recovery in the A380 ramp-up should significantly boost profitability in the mid term," he added.
European aircraft manufacturer Airbus is EADS' principal unit, alongside helicopter manufacturer Eurocopter and defence and security systems builder Cassidian.
Ring said the development of the A350 wide-body airliner "is advancing, though challenging," and should enter into service in the second half of 2013.
Reviewing the company's performance over its first decade, Ring said "the 77 percent increase in annual revenues and 34 percent increase in workforce achieved over that time show that our future growth targets are realistic."
© 2010 AFP