EADS Board of Directors asks EADS Sogerma Services to secure its recovery
Amsterdam, 12 May 2006
The EADS Board of Directors, at a meeting convened on May 12, 2006 in Amsterdam, examined the situation of the Group's subsidiary EADS Sogerma Services.
The Board analysed the very serious crisis of EADS Sogerma Services, with respect to its losses of €237 million and debts of €339 million in 2005. The Board observed that despite efforts already undertaken, this deterioration results from the accumulation of three negative factors:
-
a growing domination of the civil maintenance market by countries where labour costs are low,
-
the loss of French military maintenance markets, with no assurance as to future developments,
-
the failure of various diversification operations.
The EADS Board of Directors examined all the industrial options that may be considered and which were presented by the Management of EADS Sogerma Services. It asked the Board of EADS Sogerma Services to launch as quickly as possible the option it thought to be credible to secure the company's recovery and durability.
This project implies the development of activities with growth potential and the shutting down of loss-making activities without prospects for profitability. It will, of course, be supported by the industrial synergies and considerable input of aerostructure workloads that may be envisaged by other Group entities, mainly Airbus.
The EADS Board of Directors, aware of the fact that this project should lead to the close-down of EADS Sogerma Services site in Mérignac, ensures that total Group solidarity comes into play with an ambitious social plan aiming at proposing an appropriate solution for everybody involved.
Furthermore, EADS, which intends to be fully involved in industrial development in the Aquitaine region, decided to establish a dedicated team in charge of promoting high technologies in this area in close collaboration with local and regional political authorities and local industrial partners. This initiative will reinforce the social dynamics of the group, which has created ten thousand new jobs in France since its creation and which will create more than 2500 new jobs in 2006.
The Board made a point of reasserting its full confidence in, and full support for, the Management of EADS Sogerma Services during these difficult times for the Company.
EADS is a global leader in aerospace, defence and related services. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and the joint venture MBDA, the leading international missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo.
Contacts for the media:
| Isabelle Desmet | EADS |
Tel.: +33 1 42 24 20 63 |
| Michael Hauger | EADS |
Tel.: +49 89 60 73 42 35 |
| Miguel Sanchez | EADS |
Tel.: +34 91 5 85 77 88 |
| Bernard Pommier | EADS Sogerma Services |
Tel.: +33 5.56 12 76 67 |
