- © EADS
HANS PETER RING
Chief Financial Officer
Aero-notes N°28, December 2010
The end of a year is a good time to reflect on recent achievements and look ahead at developments to come. For many reasons, 2010 was a very important year for EADS.
On the commercial side, 2010 saw a return to air traffic growth after one of the steepest downturns in memory. The helicopter sector remains sluggish and, with budget constraints in our home markets, we are monitoring the institutional mar-
kets closely. Nevertheless, the commercial aircraft recovery has been confirmed by significant orders for Airbus, including 32 for the A380. We are now planning to increase production rates, both for single-aisle and long range aircraft.
In our major programmes, the year has seen some substantial progress. We have concluded negotiations with the customer nations for the A400M and expect to finalise the export levy scheme shortly. Three A400M are now flying in the test campaign which is progressing better than expected. The A350 programme is advancing, though challenging. It will enter into service in the second half of 2013.
For the A380, 2010 has been a turning point, with the ramp-up improving significantly. The plane has proved a favourite with passengers and airlines. Following the Qantas incident, Airbus is doing all it can to support engine upgrading and keep disruption to a minimum. Our tenth anniversary year has been an opportunity to gauge the company’s development. The 77 percent increase in annual revenues and 34 percent increase in workforce achieved
over that time show that our future growth targets are realistic. Clearly, despite the advances, we are aware that our profitability needs to improve in the future. Dollar weakness and programme challenges have weighed on profitability in the past. Continued deterioration of the dollar reflected in our hedge rates and an increase in R&D at Airbus, Eurocopter and Cassidian, mean that 2011 will also be demanding. Looking to 2012 and beyond, however, we see substantial improve-
ment potential, provided we execute on new programmes according to our plan. Better pricing and volumes and continued recovery in the A380 ramp-up should significantly boost profitability in the mid term.
EADS has coped with a weakening dollar, economic crisis and the launch of a succession of highly ambitious new programmes and generated a sound cash-flow despite these challenges. Today we are prepared for further expansion with a robust net cash position, excellent credit ratings and a strong order book. The management team will strive to improve our mid-term profitability too.
HANS PETER RING - Chief Financial Officer
|Aeronotes N°28, December 2010|
|Aeronotes N°27, September 2010|
|Aeronotes N°26, April 2010|
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