Airbus owner EADS ups targets, delays A350
TOBY STERLING
AMSTERDAM — Airbus parent company EADS NV on Friday announced a further delay to its new A350 aircraft as it reported second-quarter earnings that almost quadrupled from a year ago.
Net profit at the Leiden, Netherlands-based European Aeronautic Defence & Space Co. was 461 million euros ($567 million), up from 121 million euros in the same period a year ago. Sales rose 12 percent to 13.5 billion euros. Analysts polled by Factset had forecast profit of 350 million euros on sales of 12.8 billion euros.
However, the aerospace company also revealed that the entry into service of Airbus’ new A350, which is meant to compete with rival Boeing’s 787 Dreamliner, will be delayed by several months, until the second half of 2014. The company said the reason for the delay was “time taken for the implementation of the automated drilling process for the wings.” Airbus warned that further delays would lead to greater charges.
Incoming Chief Executive Tom Enders, promoted from Airbus in June, said the company’s order book is now at a record 551.7 billion euros. He vowed to “globalize” EADS, citing an assembly line for the A350 in the U.S. as an example.
“One important step into this direction is our decision to build a final assembly line for Airbus aircraft in the U.S.,” he said. Earlier this month EADS said it would spend $600 million over five years to build an assembly line for its A320 single-aisle jet in Mobile, Ala. – its first factory in the United States.
