Space giant EADS signals heavy profits for 2005

9th March 2005, Comments 0 comments

MUNICH, Germany, March 9 (AFP) - The European aerospace giant EADS expects to report earnings before interest and tax this year amounting to several million euros, joint chairman Philippe Camus told AFP on Wednesday.

MUNICH, Germany, March 9 (AFP) - The European aerospace giant EADS expects to report earnings before interest and tax this year amounting to several million euros, joint chairman Philippe Camus told AFP on Wednesday.

Camus, speaking before presenting annual results, said that the EBIT figure for this year would be "up to several tens of millions of euros".

EADS owns 80 percent of aircraft manufacturer Airbus and also has wide interests in the manufacture of military equipment.

The space division of the European Aeronautic Defence and Space Company (EADS) had returned to profit in 2004 in line with group targets laid down two years ago to rectify heavy losses in the space division.

EADS said in a statement that EBIT profit by space activities before the writing down of goodwill and exceptional items, in contrast to a loss of EUR 400 million in 2003, enabled it to look forward to solid growth.

Camus also said that a tightening of links between EADS and the French defence electronics group Thales was no longer on the cards because the German group DaimlerChrysler, the biggest shareholder in EADS with 30 percent, had said it objected.

Camus said: "For the moment, the matter is closed." This was because the head of DaimlerChrysler Juergen Schrempp was not convinced that the proposition was worthwhile. "There has been a debate, and the debate has ended. That's it," Camus said.

On Tuesday, EADS said it would propose Thomas Enders and Noel Forgeard as its next co-chief executive officers at a general assembly of shareholders in May.

EADS is also to propose Manfred Bischoff and Arnaud Lagardere as chairmen of the board, and Jean-Paul Gut and Hans Peter Ring as executive directors at the meeting in Amsterdam on May 11.

EADS board members are elected for a term of five years.

Juan Manuel Eguiagaray, Louis Gallois and Rudiger Grube would be nominated as non-executive directors while Francois David and Michael Rogowski would be named as independent directors, EADS said in a statement.

The announcement confirmed nominations by the German-US car maker DaimlerChrysler and the French holding company Sogeade, which includes the French media and defence group Lagardere and the French state.

Lagardere, which controls 15 percent of EADS, had said in December that it would nominate Forgeard, president of the aircraft maker Airbus, as co-chief of the European aerospace group.

© AFP (combined reports)

Subject: French News

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