EADS back in profit as Airbus orders surge

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EADS back in profit as Airbus orders surge

EADS back in profit as Airbus orders surge
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EADS is forecasting higher revenue and stable core operating profit this year.

Announcing a return to profit for 2010, Europe’s largest aerospace group said a stronger than expected rebound in the economy had boosted demand for civil airliners from its Airbus division.

But it warned of more spending on its new A350 plane this year and said defence cuts and currency fluctuations will impact profit.

Revenue for 2010 was higher than expected at 45.8 billion euros – up seven percent – while operating profit was 1.231 billion euros.

The Franco-German-led group restored a dividend of 22 euro cents after posting a net profit of 553 million euros.

In 2009, EADS sank to a net loss of 800 million euros due to costs from delays to the Airbus A400M military plane.

Down payments from airlines rushing to meet growth in emerging markets helped to swell EADS’s coffers by more than two billion euros and left it with a record net cash surplus of 11.9 billion euros

Asked about the company’s plans for acquisitions, Finance Director Hans Peter Ring said: “I think you will hear something on that in 2011.”

Ring told journalists contacts had been made “across the Atlantic” with a view to acquisitions but declined to elaborate.

EADS wants to significantly expand its US revenue to help reduce its reliance on commercial jets.