Manufacturers record strong first-half performance as European giant urges governments to relinquish shares
Rising deliveries of commercial aircraft have driven strong first-half performances by Boeing and EADS, but paradoxically leave the European manufacturer struggling to deliver on its goal of deriving 30% of annual revenues from the defence sector.
Meanwhile, Tom Enders, new co-chief executive of EADS, has renewed calls for the French and Spanish governments to relinquish their strategic shareholdings in the company within the next five years.
“Internationalisation is the key issue for the future development of our group. I would hope that in five years EADS has more free flow, that governmental shareholders have exited,” Enders told internal magazine Forum in an interview. “That would certainly boost our internationalisation strategy,” he added.
EADS says it is pursuing its goal of having defence account for 30% of its turnover, but acknowledges “it is a challenging goal as Airbus continues to grow at a fast pace”.
During the first six months of 2005, EADS saw its revenues climb by 10% compared with the same period last year, to €16 billion ($19.4 billion), on the back of a 12% increase in sales at Airbus, which accounted for around 70% of total revenue.
The airliner manufacturer, 80%-owned by EADS, delivered 189 aircraft in the first half, up by 28 from the year-earlier period.
In the defence sector, EADS’s military transport aircraft division posted a 39% increase in first-half revenues to €326 million, and defence and security systems revenues were up 3% to €2.2 billion, putting the company on course to meet its 2005 full-year target of €8.5 billion defence revenues.
Overall, EADS’s first-half earnings before interest and taxes leapt 57% to €1.54 billion.
Boeing managed an 8% first-half revenue rise – to $28 billion – prompting it to forecast revenue of around $58 billion for the whole year, and up its earnings-per-share forecast from $2.40-$2.60 per share to $2.75- $2.85 per share.
The US company’s commercial aircraft division posted revenues of $11.9 billion in the first six months of 2005, up 8% on the previous year. Boeing delivered 155 airliners, compared with 151 in the same period last year. Revenue at its Integrated Defense Systems sector rose 5% to $15.3 billion. Overall net income fell 10% to $1.1 billion.
HELEN MASSY-BERESFORD/LONDON
Source: Flight International
