European aerospace giant EADS is reporting a net loss of €446 million ($684 million) for 2007 on near-flat revenues of €39.1 billion.
EBIT for the Airbus parent was €52 million compared to €399 million in 2006. The net loss compares to a €399 million profit in 2006 on revenues of €39.4 billion.
The company is blaming the poor performance on factors including the weak dollar, costs related to delays on the A400M military transport, and continuing high levels of research and development, particularly on the A350 XWB.
For 2008 it is forecasting an EBIT of €1.8 billion on revenues in excess of €40 billion.
The order intake doubled to €136.8 billion, primarily driven by a 120% increase at Airbus, leaving the year-end order-book at a record high of €339.5 billion.
In a statement, CEO Louis Gallois says: “2007 was a tough year with many high profile challenges to be overcome. The whole of EADS has shown strength and dedication in tackling these challenges and while there is still a lot of work to be done in order to regain the full trust of our investors and customers we have made a lot of progress.
“We have implemented a simplified governance structure and maintained high levels of investment in research and technology. The focus on efficiency and changes from Power8 [cost-reduction programme] are a precondition for continued investment in EADS’ future.”
Noting the company’s strong net cash position of €7 billion, he adds: “We have fixed a lot of issues and our cash situation allows us flexibility in the face of global economic challenges. We are cautious by nature, but I feel EADS is establishing a firm footing on higher ground.”
Source: flightglobal.com's sister premium news site Air Transport Intelligence news