Airbus subsidiary’s profits jump in 2010

Airbus subsidiary’s profits jump in 2010

PARIS - The Associated Press
Airbus subsidiary’s profits jump in 2010

EADS CEO Louis Gallois (R) and Chief Financial Officer Hans Peter Ring pose prior to the start of a press conference to present the group’s 2011 results yesterday.

Strong demand for commercial jets and helicopters helped bring Airbus parent company and aerospace giant EADS NV a 72 percent jump in fourth quarter profit and a similar full-year boost, the company reported yesterday.

Shares surged as EADS’ quarterly profit of 612 million euros ($803 million) beat market expectations, thanks to huge demand for Airbus’ revamped single-aisle A320neo passenger jet and record orders that beat out U.S. rival Boeing Co. for the fourth year running.

While forecasting continued growth this year, EADS faces some shadows ahead, including the cost of repairing wing cracks in A380 superjumbo jets and challenges to Airbus’ loss-making military division.
Sales for last year were up 7 percent to 49.1 billion euros from 45.7 billion euros the year before. That was above a survey of analyst expectations that foresaw full-year revenue of 47.88 billion euros.
Full-year profit grew 87 percent to 1.03 billion euros, 553 million in 2010. Even excluding a one-off gain, profit was up 76 percent, the company said in a statement.

The company cited larger earnings in commercial aircraft and growth in the civilian helicopter market, as well as cost savings.