EADS announces charge estimate for revised A400M delivery schedule

Posted on: Nov. 5th, 2007 || Source: EADS N.V. | E-mail Article | Print Article

EADS announces charge estimate for revised A400M delivery schedule

EADS is completing its determination of the charges it will record in the third quarter regarding its recent assessment of A400M delivery delays.

While the calculations are not yet finalized, EADS now believes it will need to expense between € 1.2 billion and € 1.4 billion, of which more than € 1 billion for Airbus. This estimate is the best that can be established at this point of the programme development, and is consistent with the delays of 6 months, with a risk of a further slippage of up to a half year, that were announced on 17 October 2007.

This figure does not include new potential issues which could arise from flight testing, engine development and military systems. EADS remains in close contacts with its suppliers on these matters.

The above development forces EADS to discontinue its EBIT* guidance for 2007, which will be replaced by an updated guidance on 8 November, along with the disclosure of third quarter earnings.

The A400M programme features 192 aircraft on order from 9 nations (of which 180 aircraft ordered through OCCAR on behalf of 7 nations).

EADS is a global leader in aerospace, defence and related services. In 2006, EADS generated revenues of € 39.4 billion and employed a workforce of about 116,000. The Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and EADS Astrium, the European leader in space programmes from Ariane to Galileo. Its Defence & Security Division is a provider of comprehensive systems solutions and makes EADS the major partner in the Eurofighter consortium as well as a stakeholder in the missile systems provider MBDA. EADS also develops the A400M through its Military Transport Aircraft Division.
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