Despite strong business performance, EADS posts net loss for 2007
12 Mar 2008
Airbus parent EADS has reported a net loss of €446 million ($685.3 million) for 2007, reversing a net profit of €99 million from the previous year.
EADS said it was hit by Power8 restructuring costs, the A350 XWB programme start up charges, the declining value of the US dollar and a 6-12-month delay to the A400M military transport aircraft programme.
On the flip side, EADS said that it had delivered "a strong business performance in 2007 while experiencing significant challenges." It said that Airbus's net aircraft orders doubled to 1,341 and the value of its order book reached an all-time high of €339.5 billion by the end of 2007.
These orders were up 29 per cent over €262.8 billion at the end of 2006, despite a negative €19.9 billion revaluation owing to the weaker dollar.
"2007 was a tough year with many high-profile challenges to be overcome," CEO Louis Gallois said. "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 are a precondition for continued investment in EADS' future."
Full-year revenue for the EADS Group was €39.1 billion, slightly down from €39.4 billion in 2006. Commercial aircraft deliveries were up 4.4 per cent to 453.
EADS said it foresees a continued "resilient commercial aircraft market and Airbus deliveries peaking in 2011-2012." It projects 700 orders in 2008. It also expects revenue to exceed €40 billion this year, with deliveries of about 470 aircraft.
Airbus's 2007 revenue was flat year-over-year at €25.2 billion. Its EBIT was a negative €881 million, a 35.1% drop from a negative €572 million posted in 2006.
