EADS beset by boardroom battles and new strike

Now Reading:

EADS beset by boardroom battles and new strike

Text size Aa Aa

EADS, the parent company of Airbus, is not just facing protests from workers, but also problems in the boardroom.

To make up for losses from the production delays to the A380, the company needs to raise cash. But the French government and German investors are reportedly at odds about how to do that.

They are running out of time to resolve the issue before a shareholders meeting on 4 May.

There have been fresh demonstration at Airbus over job cuts. Around 3,000 workers held a half day strike at the company’s main plant in the French city of Toulouse. But two smaller unions refused to join the industrial action saying it is “irresponsible and suicidal” to disrupt Airbus production.

Meanwhile, the head of the defence side of EADS is predicting growth in that division should counter the financial crisis at Airbus.

Stefan Zoller says he expects profitability to improve by a third in the medium term. Operating profit rose 73% last year, to 348 million euros, and is predicted to increase by 50 million euros annually.

Zoller is banking on new markets and new business and said defence and security is “becoming more and more of an anchor of stability for EADS.”

Further growth will mainly be achieved organically, but possibly with some acquisitions, he added.