Home News UPDATE2: EADS strokes after the loss of 2009 Dividend

UPDATE2: EADS strokes after the loss of 2009 Dividend


By Natali Schwab

PARIS (Dow Jones) – European aerospace and Aerospace group EADS wants to go to a loss in the last fiscal year pay for the first time in company history, no dividend. The Group posted 2009 due to the new provisions for the A400M military transport and the long-haul A380 planes in a loss of 763 million EUR, after a profit of 1.572 billion euros in the previous year. Just in Ran final quarter on a consolidated loss of 1.054 (previous year: profit of 0.490) billion.

The MDAX-listed company would, according to CEO Louis Gallois However, as soon as possible to a dividend payment . Return He expects another dividend for 2010 can be made. 2008 0.20 per share to shareholders were flowed.

During the night, EADS had also another setback . accept The U.S. partner, Northrop Grumman, said the company was not a major U.S. $ 35 billion contract for the construction of Tanker aircraft for the U.S. Air Force to apply. The end of February, submitted Tender conditions would clearly prefer the competitor, Boeing, it was said to justify.

We had no chance of winning the tender, "said Gallois. He regretted that. EADS stand while continuing his involvement in the U.S., he insisted. The strategy there, the group would not change. The cost for the retreat, the Group sees limited: This should have no significant impact on the balance sheet, Gallois.

Largest construction sites remain A400M and A380. Thus the result last year was the further Provision for the A400M from EUR 1.8 billion, burdened EADS on Friday at the agreement in principle with the order of the incremental costs of Nations by more and more marked delays in project was announced. Previously, the reserves have already amounted to 2.4 Billion.

EBIT (before goodwill impairment and recurring items) was 2009 by the reserves, and negative Exchange rate effects to minus EUR 322 million from an increase of 2,830 billion back. The negative currency effects burdened with a total of 2.5 billion euros.

Underlying EBIT – adjusted for one-time charges or income from changes in provisions or Currency fluctuations – fell to 2.2 (previous year: 3.3) billion and was thus under the EADS forecast. Worsened hedging rates, the price decline for deliveries of commercial aircraft and rising costs could increase by Delivery levels and by the "Power 8" cost savings not achieved be compensated.

The Power8 led to savings of 2 billion euros in last year. 8000 jobs had been eliminated as part of this. 2010, 2000 further job loss. The Power 8 + is designed to follow-up program End of 2012, annual savings of EUR 1 billion to bring. This expected from the group "Future EADS" to the end of 2012, a annual cost reduction of 350 million euros. The group lies with all Programs "in the plan," said Gallois.

The main subsidiary Airbus reached 2009, with a turnover of 28.1 (28.99) billion, of which EUR 26.4 billion was attributable to the civil business. The Deliveries reached a new high of 498 (483) machines. The increased delivery volumes were, however, Price declines and currency costs compared. EBIT (before Goodwill amortization and exceptional charges) collapsed on 386 (2,306) million.

The A380 still significantly affected the outcome. Therefore, the company turned back EUR 240 million. Adjusted for Currency effects and the A380 reserves the EBIT amounted to 1.1 (2.1) billion. In addition to provisions had a negative effect on the inefficiency Score from Airbus. An adjustment of excess capacity due to lower shipments in the fourth quarter, it incurred, said.

The A380 program remains a big problem factor accompany the Group will continue to. Although EADS sees in the current Year "slight improvement", but the A380 is expected EBIT before exceptional items in the Group continues "substantial burden". A break of the program in the next two to three Years, in the opinion of Chief Financial Officer Hans Peter Ring, not be possible.

In contrast, the company expects cost savings and Improvements in the price of civilian aircraft positively to the group result should affect the current year.

Fresh money for investment, for example, needs EADS , according to Gallois currently not. A capital example He considers that, given a net cash position of around 9.8 billion EUR at the end 2009 for not necessary. Nevertheless, EADS wants to focus on in 2010 the liquidity and cash management basket. An important feature of Defense of the ratings, so Gallois. Thus, it would perhaps also currently no major acquisitions give what does not, however, smaller acquisitions excluded.

For the current year was cautious and EADS forecast EBIT of around EUR 1 billion. The deteriorating hedging Courses would be burdening the previous year, with 1 billion euros. Lower Helicopter deliveries, an increase in spending on research and development and cost inflation, according to EADS, the profitability . affecting

EADS sees sales at approximately the previous year’s level at EUR 42.8 billion. Here the group sets an exchange rate euro / US dollar from 1.40 to Reason. The order backlog of EUR 389 billion this constitutes a solid basis for future deliveries.

The EADS subsidiary Airbus predicts a maximum of so many Deliveries of the previous year. The estimated gross new orders should be of 250 to 300 aircraft. Eurocopter is the case of Group from a decline in deliveries of about 6%.

The stock broke to Start Last trade by 5.6% and then recovered during the Course only slightly. At noon, the paper was quoted at 15,08 EUR, a decrease of still 4.8%. This was the weakest of the value of EADS shares in the MDAX, the 1.2% yield. In addition to the withdrawal of the tanker-tender Market observers criticized the failure of the dividend and the outlook for 2010. LBBW called it disappointing. The EBIT forecast lies around 30% below the consensus estimate of the market.


Website: www.eads.com
Natali-by Schwab, Dow Jones Newswires, +49 (0) 69-29725 119,
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(END) Dow Jones Newswires

March 09, 2010 06:47 ET (11:47 GMT)

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