EADS predicts higher profits

Aerospace company EADS predicted higher profit this year following stronger than expected 2012 earnings and a clampdown on costs.

Airbus’ parent company increased its dividend, while stabilising hard-to-predict cashflows, but took charges for defence restructuring and its poor helicopter deals.

Chief executive Tom Enders pledged to run EADS as a "normal company" after years of political interference, as it revealed earnings for the first time since failing to carry off an attempted merger with UK arms contractor BAE Systems.

The BAE setback paved the way for a reorganisation of the European aircraft manufacturer's complex public and private shareholdings.

France and Germany will continue to own stakes, but a higher proportion of shares will be held by ordinary investors.

Airbus has also bounced back a year after the high-profile discovery of wing cracks on its A380 superjumbo, with the spotlight falling instead on Boeing, which is wrestling with battery problems on its 787 Dreamliner aircraft.

EADS said it had largely absorbed the costs of repairing and preventing cracks on the world's largest airliner and any further potential one-off costs should be limited mainly to the A350 project.

Operating profit rose 68 per cent to €3 billion in 2012 for an operating margin of 5.3 per cent on revenue up 15 per cent to €56.5 billion. Net profit also grew 19 per cent to €1.2 billion.

Reuters