The rebirth of EADS

Principally thanks to its subsidiary Airbus, the European group EADS become again beneficial. However, the problems concerning the realization of the A4000M will maybe waste these profits ...

The total benefits of EADS for the first nine months of 2008 nearly approach 2 billions of euros whereas the prevision was 1.8 billion for the whole year. The turnover will maybe approach 40 billions of euros.

The fall of the Euro compared with the Dollars help EADS to take up provisions. All the subsidiaries of the group have become beneficiary ( Eurocopter 164 millions, +45% / Astrium 140 millions, +97 %/ Security and Defense division 219 millions, +74%). The benefits of Airbus (more than 1.5 billion) represent 75% of the total benefits of the group (whereas this division had lost 677 millions last year).

However, the group faces problems concerning the A400M, a future military plane. Indeed, the project needs an other provision of 341 millions of euros (1.4 billion of provision in 2007...). The problem comes from the motors: Snecma and Rolls-Royce are helping now MTU to construct it... 

The EADS's order book has increased of 18% since the beginning of the year (more than 400 billions of euros) But the group will continue its attempts of economize money. Indeed, after the Power 8 and Power 8 + plans, EADS will establish the FUTURE EADS plan, which will help the group to save more than 200 millions euros.

            (An artist impression of the A400M)

These benefits (which are the best results of EADS since its creation) show us the efficiency of the new administration (established after the crisis of Airbus because of the A380) and of its plan (Power 8 and Power 8 +). I think it proves that a good administration is totally efficient in period of crisis and can "changer la donne". It also shows the European domination in air sector (here in plane construction, but also in air companies (see Air France and Lufthansa)) and the dependence of the european companies with the Dollars rate.