It looks that beside the give away A32X-s and A3XX-s, AI also
produced some profit as well!
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Airbus Fuels EADS H1 Core Profits, FX Charge Hits Net
EADS said on Wednesday that a hefty writedown linked to currency
hedging sent its bottom line into the red in the first half of 2000,
but posted robust core profits on the strength of planemaker Airbus
In the first set of financial results since the European aerospace
giant was created from the merger of France's Aerospatiale Matra,
Germany's DaimlerChrysler Aerospace and Spain's Casa, EADS said
operating profits came in at a stronger- than-expected 553 million
No comparative data for 1999 was provided because of the complexity of
re-treating the combined accounts of three separate companies from
three different countries.
"Our half-year EBIT figure of 553 million euros is in line with our
expectations for year-end 2000," said Chief Financial Officer
"We also expect to have a stronger cash position by year-end ... and
this will further reinforce a very strong financial situation."
Due to the uncertainties associated with the accounts, many banks
surveyed by Reuters chose not to publish estimates.
Those that did had forecast EBIT, or core operating profits, would fall
in a range between 330 million and 424 million euros and that the net
loss would come in at 280 million to 350 million euros.
The company posted a net loss because of a 644 million euro financial
expense which was mainly due to a currency provision that is a legacy
of Aerospatiale Matra's "macro" hedging approach - a policy which EADS
is unravelling over the coming years.
As expected, the figures showed that Airbus Industrie, in which EADS
holds an 80 percent stake, was by far the company's main profit driver.
Operating profits at Airbus totalled 516 million euros in the first
half, or roughly 93 percent of total core profits. The next strongest
area was aeronautics, for which core profits totalled a mere 53 million
EADS said it was on track to boost its operating margin from a proforma
6.4 percent in 1999 to eight percent in 2004, including the drag from
its investment in the $10.7 billion A3XX project.
The company also said that it had already identified more than 400
merger integration projects and that it expected easily to
attain its target of 580 million euros in annual merger synergies by
"With a very high level of new orders worth 24 billion euros in the
first half of the year, we have already achieved almost 100 percent of
our initial target for the full-year," said co-ChiefExecutive Rainer
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