EADS will hold back the appointment of its new executive committee, including Noel Forgeard's successor as head of Airbus, until 1 June. The company says its board of directors has decided to delay the decision so EADS can formally elect its new chief executives and approve the future structure of the business at the same time.
Designate co-chief executives Forgeard and Tom Enders will retain their current roles as respectively head of Airbus and head of the Defence and Security Systems division while they and the company's shareholders choose an executive committee to propose to the board. Co-chairmen Manfred Bischoff and Arnaud Lagardère will take responsibility for the executive management until then.
EADS declines to comment on press speculation that dissent among French and German shareholders is delaying a decision on the new head of Airbus. But Forgeard told French daily newspaper Le Figaro that "within Airbus, the Franco-German relationship is excellent...on the other hand there are disagreements between the shareholders".
French newspapers have also reported that the company is waiting until after France's referendum on the European constitution on 29 May to announce the new executive committee. But EADS insists "there is no significance in the date – the directors decided to wait until 1 June and then vote everything in one package."
EADS posted improved first quarter results on the back of strong performance at Airbus. Net profit rose to €?330 million ($424 million) from €49 million in the same period last year, while earnings before interest and tax (EBIT) more than tripled to €657 million from €198 million in the first quarter of 2004. Revenues were up 16% at €7 billion.
Airbus's EBIT rose 180% to ?628 million year-on-year, as it delivered 87 aircraft during the first quarter – 20 more than in the first quarter of 2004. The division also benefited from favourable currency hedging rates.
HELEN MASSY-BEREESFORD/LONDON
Source: Flight International
