EADS profits take off

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EADS profits take off

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European aerospace firm EADS is predicting higher profit this year following stronger than expected earnings in 2012 along with a clampdown on costs.

The parent company of Airbus increased its dividend, while stabilising hard-to-predict cashflows, but did have to take charges for restructuring in its defence business.

Airbus has also bounced back a year after the high-profile discovery of wing cracks on its A380 superjumbo, with the spotlight falling instead on Boeing, which is wrestling with battery problems on its 787 Dreamliner.

EADS said it had largely absorbed the costs of repairing and preventing cracks on the world’s largest airliner and any further potential one-off costs should be limited mainly to the A350 project, which it continued to describe as “challenging”.

The numbers

EADS operating profit rose 68 percent to three billion euros in 2012 for an operating margin of 5.3 percent on revenue up 15 percent to 56.5 billion.

Net profit also grew 19 percent to 1.2 billion.

For 2013 it targeted 3.5 billion euros in operating profit and earnings per share of 2.5 euros, up from 2.24 euros, before a planned share buyback linked to the shake-up of shareholdings.