EADS warns on profits and orders

EADS, the parent company of Airbus, has announced better-than-expected results for last year. But there was also a warning about fewer plane orders this year and lower profits as the recession cuts the prices EADS can charge and it has to lend more money to cash-strapped airlines so they can buy the company’s planes.

But Chief Executive Louis Gallois was upbeat as he told reporters: “The group has regained stability last year. Top and bottom line growth is good news, 43.3 billion revenues. At the present rate it is above Boeing.”

But the A400M military transport plane – which is three years behind schedule – continues to cost EADS money and the company acknowledged it could be cancelled next month if its NATO customers decide they don’t want it, though that is unlikely.

EADS shares were lower as investors focused on the challenges which the company, like its US rival Boeing, faces as airlines try to cope with falling demand and tougher financing.

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tags: Airlines, EADS, Profits