A400M woes push EADS into the red
Associated Press
Airbus parent company EADS NV reported Tuesday that spiraling costs on its military transport plane and its A380 superjumbo pushed it into the red and warned that both programs will be loss-making for years.
Paris-based European Aeronautic Defence & Space Co. said it lost euro1.05 billion ($1.44 billion) in the three months to December after booking charges of euro1.6 billion for the A400M military project and euro240 million for the A380 in the period. The loss compares to a euro490 million net profit a year earlier.
In the full year, the net loss of euro763 million compares to a net profit of euro1.57 billion in 2008.
EADS has been grappling with cost overruns and delays to its troubled military program and the A380, both of which are years late. In 2007, delays to the programs also led to a full year net loss…
EADS’ defense division suffered a setback Monday after American partner Northrup Grumman withdrew from a $35 billion contract to build refueling tankers for the Air Force, saying the Pentagon’s guidelines favor Boeing. The duo were originally awarded the contract, but it was overturned on appeal.
Read the full story.
Similar Posts:
- EADS Stock Soared as Profits Beat Expectations
- EADS Profits Tank
- Not a Good Quarter for Northrop Grumman
- Northrop Grumman Profits Fall 20 Percent
- Boeing Loses $1.6 Billion on Civilian Airliner Delays
OUCH! OUCH! OUCH!