EADS cash pile at a record $17.3bn
14 May 2011
Reporting higher-than-expected first-quarter earnings, Airbus parent EADS is currently sitting on a cash pile hit that is at a record high of $17.32 billion. The cash hoard is now beginning to cause embarrassment as trans-Atlantic competitor Boeing is drawing attention to this cash pile in its bid to prevent European countries from subsidising Airbus aircraft development programmes, such as the A350 XWB.
EADS said quarterly operating profit more than doubled to $273.78 million on revenue which was up 10 per cent to $14.05 billion as income from passenger jets, helicopters and space products made up for a slack in defence income.
The company repeated its outlook for 2011.
EADS is set to increase spending on its A350 XWB programme, which is designed to compete with Boeing's 787 Dreamliner.
EADS is benefiting from strong cash inflows from aircraft deposits.
The company reported an increase in net cash position by $427.78 million by end-March to take its cash surplus to a record of $17.32 billion.
