EADS in revenue boost after plane order bounce back

City A.M. Reporter
European aerospace group forecast higher revenue and stable core operating profit as it boosts development spending this year, after bouncing back to profit with a record cash pile in 2010.

Europe's largest aerospace group cheered a stronger than expected rebound in the economy and in demand at subsidiary Airbus, but is bracing for higher spending on its new A350 airliner, defence cuts and poorer currency hedges this year.

EADS posted higher than expected 2010 revenue of 45.8bn euros (£39.4bn), up seven per cent, and operating profit of 1.23bn euros, in line with market forecasts.

In 2009, EADS sank to a net loss of 800m euros after taking provisions on delays to the A400M military plane.

Wednesday's results were overshadowed by a $29bn (£17bn) slew of plane orders in the previous 24 hours, about half of which will benefit Airbus, the EADS planemaking subsidiary, with the rest scooped up by arch-rival Boeing.