kappel
Posts: 1836
Joined: Thu Jul 14, 2005 6:48 pm

Eads Profits Up

Thu Nov 10, 2005 11:26 pm

http://www.luchtvaartnieuws.nl/news/?ID=11056

EADS has posted a net-profit for the first 9 months of 2005 of 1 billon euros, a 74 percent increase over last year. It was in part thanks to Airbus, whose profits were up 34 percent, thanks in part to more deliveries. Airbus' turnover was 16 billion euros.

Not really surprising seeing the current state of aviation and influx of orders at both A and B. Guess al those planes weren't given away for dree after all!  duck 
L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
 
art
Posts: 2665
Joined: Tue Feb 08, 2005 11:46 am

RE: Eads Profits Up

Thu Nov 10, 2005 11:38 pm

EADS site source (Airbus element on page 8):

http://www.eads.net/xml/content/OF00000000400004/7/62/40963627.pdf
 
kappel
Posts: 1836
Joined: Thu Jul 14, 2005 6:48 pm

RE: Eads Profits Up

Thu Nov 10, 2005 11:44 pm

Quoting Art (Reply 1):
EADS site source (Airbus element on page 8):

thanks, i was looking on the airbus site, but couldn't find anything. forgot to look on the EADS site.  banghead  D'OH!!
L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
 
sabenapilot
Posts: 2442
Joined: Sat Feb 26, 2000 6:18 pm

RE: Eads Profits Up

Fri Nov 11, 2005 12:49 am

Quoting Kappel (Thread starter):
Guess all those planes weren't given away for free after all!

An interesting number is the profit margin at Airbus:

From the EADS report, it is derived this is at a whopping 11,7%!!!
 
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scbriml
Posts: 13241
Joined: Wed Jul 02, 2003 10:37 pm

RE: Eads Profits Up

Fri Nov 11, 2005 4:11 am

Quoting Sabenapilot (Reply 3):
From the EADS report, it is derived this is at a whopping 11,7%!!!

How can that be? The collective "wisdom" on a.net is that Airbus gives its planes away.  scratchchin 

Oh wait, perhaps the collective wisdom is just wrong!  yes 
Time flies like an arrow. Fruit flies like a banana!
 
CrazyHorse
Posts: 316
Joined: Wed Nov 02, 2005 12:16 am

RE: Eads Profits Up

Fri Nov 11, 2005 4:23 am

Quoting Scbriml (Reply 4):
How can that be? The collective "wisdom" on a.net is that Airbus gives its planes away.

Both big aircraft producer gives big rebates to their customer, not only Airbus. And how we could see, this works quite well, because the list price is very high and the profit margin is big.
So Airbus could give rebates and also the profit of the company grows.
Every good working company do this.
 
astuteman
Posts: 6340
Joined: Mon Jan 24, 2005 7:50 pm

RE: Eads Profits Up

Fri Nov 11, 2005 6:18 am

Quoting Sabenapilot (Reply 3):
From the EADS report, it is derived this is at a whopping 11,7%!!!

Which compares to 9.5% for 2004  checkmark 

As an Airbus fan and confirmed Accounts watcher, I have to suggest that the hidden message is a bit more mixed.
The operating profit margin for the Q1 + Q2 combined for Airbus was 12.8%.

The margin for the Q3 was only 8.6%. Whilst there is a natural dip in the summer period, Airbus are still only forecasting 9.2% margin for Q4, and a margin for the whole year of 11.0%.

There's some suggestion that this is accounted for by the fact that Airbus's hedging position for Q3 + Q4 was not as positive as Q1 + Q2.
Nevertheless, Q1 2006 will be interesting numbers to watch.

For context, Boeing are forecasting 7.5% margin this year, and 8.5% margin next year.
A
 
wingman
Posts: 2768
Joined: Thu May 27, 1999 4:25 am

RE: Eads Profits Up

Fri Nov 11, 2005 11:22 am

Astuteman,

No flaming intended, just curious: are the margin figures you quote from BCAG or the entire Boeing company? Just wondering if we're comparing apples to apples.
 
astuteman
Posts: 6340
Joined: Mon Jan 24, 2005 7:50 pm

RE: Eads Profits Up

Fri Nov 11, 2005 8:04 pm

Quoting Wingman (Reply 7):
No flaming intended, just curious: are the margin figures you quote from BCAG or the entire Boeing company? Just wondering if we're comparing apples to apples.

No flaming implied  Smile. Your question is totally pertinent, and points out my oversight. Thanks.

The figure I quoted are B's forecasts for BCAG only.

Boeing Corporation's forecasts are substantially higher, given the higher margin they generate on defence work ( unlike EADS....)

Regards

I guess my question is "Have A's profits seen their peak (margin) and will BCAG catch up in 2007/8, or is this a one (or two) off?"
 
Ruscoe
Posts: 1577
Joined: Sun Aug 22, 1999 5:41 pm

RE: Eads Profits Up

Fri Nov 11, 2005 8:40 pm

Something to consider is that Airbus is delivering planes now that in many cases were agreed to many years ago, when margins were better.
Also agree entirely about hedgeing being less favourable in the future. Also I have been told (but can't quote) the the most expensive part of a new aircraft program is when certification testing is going on, and production is being ramped up, so the next couple of qtrs will be very interesting.

Ruscoe

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