Airbus parent company enjoys strong year despite tough conditions
THE parent company of Airbus has reported a 19 per cent increase in income despite suffering a turbulent year.
EADS, which oversees Airbus, saw its proposed merger with BAE Systems fail to get off the ground and the plane manufacturer was knocked off the top spot as the biggest airplane manufacturer by American rival Boeing.
But despite the setback sand continued delays in the programme to build its new A350 aircraft the company still saw a 19 per cent increase in profits to £1.06 billion.
The company saw a big rise in earnings but profits were hit by the on-going costs surrounding the development of the A350.
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EADS announced its results in Berlin and the company said it enjoyed “strong revenue and underlying profit growth”.
The figures have come at a time when Boeing has reestablished its pre-eminence in the market despite its continued problems with the new 787 Dreamliner plane. Boeing’s new plane has been hit by a series of technical problems which has resulted in fleets being grounded across the world.
EADS new boss Tom Enders said he was pleased with the results which has come at a time which was described as a “difficult macro-economic environment”.
Despite the tough conditions the company said it experienced “continued momentum” in its commercial activities while its defence revenues were broadly stable.
Airbus employs around 4,000 people at its factory at Filton and supports thousands of other jobs in the area. The company said its order book increased to 566.5 billion euros by the end of 2012 with revenues of 56.5 billion euros.
Mr Enders, who took over as chief executive in May, said: “EADS achieved double-digit revenue and profit growth during 2012 while the order backlog increased further.
“A strong focus on deliveries helped to significantly improve cash generation during the fourth quarter. Going-forward, the focus on bottom line growth remains our priority number one as a management team. And there’s still some way to go to meet our profitability targets.
“If anything, the new governance, the new shareholder structure and the new Board as of end March will further energise the company and its employees on their successful international growth path.”
The A350 has already been hit by a series of delays and it is not due to fly until the second half of next year. There are growing fears that the delays and costs will affect EADS’s profits next year.
The company said: “Good progress is being made on the A350 programme but it remains challenging and there is no room left in the schedule for entry into service.”
In October, EADS called off a proposed merger with BAE Systems, which would have created one of the world’s largest aerospace and defence companies, after various Governments across Europe objected.