|Page (1) of 1 - 07/27/12||email article||print page|
Airbus owner EADS raises full year estimates, delays rollout of A350
AMSTERDAM (AP) Airbus parent EADS NV Friday announced a further delay to its new A350 aircraft as it reported second-quarter earnings that almost quadrupled from a year ago.
Net profit at the Leiden, Netherlands-based European Aeronautic Defence and Space Company was 461 million ($567 million), up from 121 million in the same period a year ago. Sales rose 12 percent to 13.5 billion. Analysts polled by Factset had forecast profit of 350 million on sales of 12.8 billion euros.
However, the aerospace company also revealed that the rollout of Airbus's new A350, which is meant to compete with rival Boeing's 787 "Dreamliner," will be delayed until the second half of 2014. The company said the reason for the delay was "time taken for the implementation of the automated drilling process for the wings." Airbus has taken a 124 million charge as a result.
Incoming Chief Executive Tom Enders, promoted from Airbus in June, said the company's order-book is now at a record 551.7 billion. He vowed to "globalize" EADS, citing an assembly line for the A350 in the U.S. as an example.
" One important step into this direction is our decision to build a final assembly Line for Airbus aircraft in the US", he said. Earlier this month EADS said it would spend $600 million over the five years to build an assembly line for its A320 single-aisle jet in Mobile, Alabama its first factory in the United States.
Based on the company's first half performance, Enders raised sales targets to a 10 percent increase in 2012 from the 6 percent EADS forecast after first quarter earnings. Operating profits will be 2.7 billion, up from 2.5 billion, he said.
Shares jumped 6.2 percent to 29.955 in early trading in Paris, where EADS has its primary listing.