EADS reports profit fall, but raises targets

30th July 2010, Comments 0 comments

European aerospace group EADS, which controls Airbus, reported a halving of first-half profits on Friday but raised its targets for the year on a recovery of airline business.

The group also said it was looking for a takeover target, and the price of its shares rose by 3.36 percent to 18.17 euros.

The net profit for the first six months of the year was 185 million euros (242.4 million dollars) from 378 million euros at the same time last year. The second-quarter figure fell by 61.0 percent to 82 million euros.

Sales in the second quarter totalled 11.358 billion euros and the operating profit was 323 million euros. These figures were better than analysts had expected.

Finance director Hans-Peter Ring told a telephone press conference that the group had been surprised by the speed of recovery from crisis by the civil aviation sector.

EADS now expected sales of 44 billion euros this year instead of 42.8 billion euros in line with the outcome last year.

The group, which is highly sensitive to the exchange rate of the euro against the dollar since much of its costs are in euros while sales are in dollars, reported it was benefiting from the fall of the euro.

Airbus, which makes airliners, announced several big orders at the recent Farnborough air show in Britain and now hopes to take a total of more than 400 orders this year compared with 250-300 expected previously.

It expects to deliver about 500 aircraft this year, about the same as the figure of 498 for last year.

The European Aeronautic Defence and Space Company (EADS), has a cash pile of 8.9 billion euros, and said it was ready to spend up to 1.0 billion euros on a takeover, and was interested in the security, defence and services sectors.

Chief executive Louis Gallois said that the group was concerned about prospects for the defence sector because many governments were cutting budgets.

© 2010 AFP

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