EADS lifted by Airbus performance

European Aeronautic, Defence & Space posted a first-quarter profit as its Airbus SAS unit, the world's largest commercial…

European Aeronautic, Defence & Space posted a first-quarter profit as its Airbus SAS unit, the world's largest commercial-aircraft maker, delivered more planes.

Net income was €285 million ($440 million), or 35 cents a share, compared with a loss of €10 million, or 1 cent, a year earlier, Paris- and Munich-based EADS said in a statement.

Sales rose 10 per cent to €9.9 billion.

Airbus, which supplied 5.2 percent more planes to customers in the quarter, said yesterday that the 525-seat A380 faces further postponements on top of two years of delays.

The Toulouse, France-based division reported full-year losses in 2006 and 2007 because of late production of the double-decker A380 and redesigns of the planned A350, a model that will compete with Boeing Co.'s 787 Dreamliner.

"Though many serious challenges have been overcome, there remains much to do in order to secure the significant and lasting improvement in operational performance we are targeting," chief executive Officer Louis Gallois said in the statement. "First-
quarter results are encouraging in that respect."

EADS has dropped 28 percent in Paris trading this year, compared with a 3 per cent decline at Chicago-based Boeing.

Earnings before interest and tax, excluding goodwill and one-time gains or costs, rose more than ninefold to €769 million from €88 million a year earlier amid improvements at all divisions and a decline in reorganization costs, EADS said. Currency effects hurt Ebit by €360 million.

EADS reiterated its 2008 forecast of €1.8 billion in adjusted Ebit.

Bloomberg