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Military

EADS announces charge estimate for revised A400M delivery schedule

Amsterdam, 05 November 2007
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.

EADS Corporate Communications:

José María Palomino
Tel.: +34 91 5 85 77 88

Alexander Reinhardt
Tel.: +49 89 60 73 42 35

Corinne Meutey
Tel.: +33 1 42 24 20 63

*EBIT

EADS uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.

Safe Harbour Statement:

Certain statements contained in this press release are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management’s beliefs. These statements reflect the EADS’ views and assumptions as of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

When used in this press release, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “plan to” and “project” are intended to identify forward-looking statements.

This forward looking information is based upon a number of assumptions including without limitation: assumption regarding demand, current and future markets for EADS’ products and services, internal performance, customer financing, customer, supplier and subcontractor performance or contracts negotiations, favourable outcomes of certain pending sales campaigns.

Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on variety of factors including without limitation: general economic and labour conditions, including in particular economic conditions in Europe, North America and Asia, legal, financial and governmental risk related to international transactions, the cyclical nature of some of EADS’ businesses, volatility of the market for certain products and services, product performance risks, collective bargaining labour disputes, factors that result in significant and prolonged disruption to air travel world wide, the outcome of political and legal processes, including uncertainty regarding government funding of certain programs, consolidation among competitors in the aerospace industry, the cost of developing, and the commercial success of new products, exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies, legal proceeding and other economic, political and technological risk and uncertainties.

Additional information regarding these factors is contained in the Company’s “registration document” dated 25 April 2007.



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