EADS Reels From Profit To Loss On Military Plane Woes
Giant European Contractor Loses Hope Of Profit This Year
European Aeronautic Defence and Space Co. [EAD], the giant European defense contractor and maker of commercial airliners, plunged to a crushing $705 million loss in the first nine months of this year, from an $867 million profit in the nine months last year.
EADS also dropped its hope of showing any profit for the full year, citing in part difficulties with development and production of its A400M military airlifter plane.
As well, the slumping value of the U.S. dollar in currency exchange markets, such as versus the value of the euro, contributed to financial bleak times for EADS, according to the company.
The dismal profit picture was accompanied by relatively flat revenues of $27.767 billion in the nine months this year versus $27.469 billion in the period last year.
This is just one more black eye for the firm, which has faced difficulties in maintaining its lead in the commercial airliner business, including long delays in bringing airliners from drawing boards to runways.
A bright note, however, is that unfilled orders for EADS planes and products rose to $304.708 billion at the end of the nine months this year, versus $262.810 billion at the end of the period last year.
That included an advance in defense-contract orders rising to $55.373 billion this year from $52.933 billion at the end of the nine months last year.
EADS stated that its financial weakness shows the need for cost cutting.