R&D SPEND HITS EADS SIX-MONTH INCOME
EADS's first-half net income halved to €185 million ($245 million) as revenue held steady at €20.3 billion. Rising research and development spending and deteriorating hedge and exchange rates cut earnings before interest and tax to €406 million, from €888 million in the period last year. Airbus Commercial earnings plummeted by two-thirds to €241 million, while Airbus Military lost €161 million, improving on its 2009 first-half deficit of €218 million. Eurocopter's earnings dropped from €99 million to €71 million, Astrium's were up 7% at €106 million, and Defence & Security's narrowed 23% to €110 million. EADS expects full-year earnings to total €1 billion, compared with a 2009 loss of €322 million.
SWISS SHINES BRIGHTLY AT LUFTHANSA
Swiss International Air Lines emerged as the brightest of Lufthansa Group's carriers over the first six months, turning in an increased operating profit of €54 million ($71 million) as the other airlines posted losses. Lufthansa's passenger airline division ended the first half with an operating loss of €203 million.
EMBRAER BOOSTS OUTLOOK AFTER Q2 INCOME RISES
Embraer has posted a 3.7% rise in second quarter net income on the back of a recovery in its commercial aviation segment, prompting the airframer to increase its annual revenue projection by 5% to $5.25 billion.
GKN THRIVES DESPITE F-22 PHASE-OUT
First-half trading profit at GKN was up 1% to £80 million ($128 million) despite a 5% dip in sales to £734 million, reflecting lower Lockheed Martin F-22 sales during that programme's run-down, a softer military aftermarket and broadly flat civil sales.
BAE SYSTEMS BACK IN THE BLACK
BAE Systems achieved a pre-tax profit of £798 million ($1.27 billion) in the first six months of 2010, reversing a £37 million pre-tax loss in 2009's first half. The electronics, intelligence and support operating group's result was up 13% at £278 million - despite revenue dropping 8% to £2.65 billion - with BAE citing "ongoing cost reduction and efficiency programmes". The programmes and support group's operating result rose 37% to £287 million as revenues increased 40% to £3 billion. The international group's operating result jumped 48% to £206 million as revenue rose 62% to £1.6 billion. Regional aircraft earnings fell 56% to £17 million.
CURTISS-WRIGHT GETS MOOG DREAMLINER DEAL
Moog Aircraft has awarded Curtiss-Wright a $20 million contract to supply solenoids for Boeing 787 flight-control systems.
HAZY'S AIR LEASE AGREES AIR FRANCE DEALS
Air France has agreed to sell six aircraft to Steven Udvar-Hazy's new lessor Air Lease and lease them back. The deal includes two new Airbus A320s, plus a used A319 and A321, as well as a used A330-200 and a new Boeing 777-300ER.
GOODRICH GETS INSIDE BUSINESS JETS
Goodrich is to acquire the $170 million-revenue cabin management business of DeCrane Holdings, which provides business jet seating, furniture, veneers and cabin management systems, for $280 million. The transaction does not include DeCrane's aircraft completions business.
Source: Flight International
