European aerospace giant EADS has reported a significant net profit for 2010, up from considerable losses a year earlier. The manufacturer's A400M and A380 superjumbo programs are said to be back on track.
The military transport A400M program suffered from delays
Europe's largest aerospace firm EADS has reported a net profit of 553 million euros ($740 million) for 2010, up significantly from a loss of 763 million a year earlier.
In a statement released Wednesday, the company cautiously predicted a stable result this year and a "clear improvement" in 2012, with larger sales volumes, higher prices and a boost to the Airbus A380 program.
For 2011, EADS expects operating earnings of 1.3 billion euros, before any one-off charges.
In the last quarter of 2010 the company enjoyed profits of 355 million euros, compared to a loss in the same period a year earlier when earnings suffered due to spiraling costs on EADS' new military transport, the A400M, and the A380 superjumbo. Both programs had suffered from delays.
According to Louis Gallois, chief executive officer at EADS, the risks in the A400M program have been significantly reduced. In the statement, he added that production of the A380 was “steadily improving.”
European aircraft manufacturer Airbus is the principal unit at EADS, alongside defense and security systems builder Cassidian and helicopter manufacturer Eurocopter.
Author: Martin Kuebler (AFP, AP, dpa)
Editor: Michael Lawton