Costs Cloud EADS Profit Forecast Despite A320neo Boost
Despite a strong rebound in orders and deliveries, and despite being flush with cash reserves, the new year’s forecast for Europe’s EADS aerospace and defe
Despite a strong rebound in orders and deliveries, and despite being flush with cash reserves, the new year’s forecast for Europe’s EADS aerospace and defense group remains sorely lacking in one respect: it still can’t turn a decent profit.
EADS chief executive Louis Gallois said at a January 12 press conference that the company still faces a battle to control costs and that it likely won’t achieve “satisfactory” levels of profitability until 2012. Specifically, he indicated the need to streamline the cost structure for production of the A380 widebody transport, as Airbus continues to pay the price for design and engineering errors at the development phase of the program.
