EADS SHAREHOLDERS APPROVE NEW STRUCTURE
GOVERNANCE EADS's shareholders have formalised the firm's simplified management and leadership structure, rubber stamping Rudiger Grube's role as chairman and Louis Gallois' position as chief executive for five-year terms. The board also created three committees: a strategic committee will be chaired by Rudiger Grube, an audit committee led by Deutsche Bank board member Hermann-Josef Lamberti and a remuneration and nomination committee chaired by UK National Grid chairman John Parker. Aside from Grube, Gallois, Parker and Lamberti, EADS's board now comprises Kuka chairman Rolf Bartke, Lagardère chief financial officer Dominique D'Hinnin, Fundacion Alternativas director of studies Juan Manuel Eguiagaray Ucelay, Lagardère chief executive Arnaud Lagardère, Arcelor Mittal chief executive Lakshmi Mittal, BNP Paribas chairman Michel Pebereau and Daimler board member Bodo Uebber.
CZECH AIRCRAFT INDUSTRY GAINS ALTITUDE
GROWTH Turnover in the Czech Republic's aircraft industry increased last year for the first time since 2002, with combined sales of the 41 members of the local Aviation Manufacturers Association totalling around CKr8.66 billion ($450 million). From a high of CKr11.14 billion in 2002, sales had declined to less than CKr7 billion last year. The number of people working in the sector rose as well, from 7,691 in 2005 to 7,889 last year, while the aircraft industry's share of Czech spending on scientific research as a percentage of turnover increased to 15.1% last year from just 5.6% in 2002. Association president Milan Holl attributed the turnaround to the establishment of a number of smaller firms, to local firms becoming suppliers to major European and US players and to Czech Republic's becoming a full member of the European Union in 2004.
VOLVO AERO LIKES WEIGHT-LOSS PROGRAMME
ENGINES Improved aftermarket profitability and a 47% increase in its component business orderbook helped Volvo Aero boost third- quarter operating profit by 3% to SKr148 million ($22.8 million) sales were down 5% to SKr1.85 billion owing to currency movements and a plant closure. For the first nine months of the year, the Volvo Group division's profit was down by more than a third at SRk333 million on sales down 7.4% to SKr5.65 billion. During the quarter the business scored a major win with its selection by Pratt & Whitney to develop a reduced weight turbine exhaust case for the Engine Alliance GP7000 engine powering the Airbus A380.
AEROSPACE HITS STORK PROFITS
RESULTS Delays to the Airbus A380 and NH Industries NH90 helicopter programmes hurt profits at Dutch conglomerate Stork's aerospace division, where revenues were roughly unchanged in the third quarter at €129 million ($183 million), but operating profits for the period slumped from €8.3 million to €1.9 million. For the first nine months of the year, sales rose slightly to €405.2 million, but operating results crashed, from a €30.3 million profit last time to a €25.1 million loss this time. According to the company, its Fokker Elmo wiring business is "developing well", and it got a recent boost from an undisclosed aerospace structures project that could ultimately be worth €600 million in revenues. However, for the group, chief executive Sjoerd Vollebregt admits two years of uncertainty around Stork's ownership is "increasingly" leaving its mark. A move by private equity firm Candover to acquire the company stalled on the refusal of Stork's largest single shareholder - Iceland's LME Holdings - to accept the offer.
Source: Flight International
