EADS posts €705 million nine-month net loss

Weighed down by A350 XWB program launch costs, Power8 restructuring charges and the declining value of the dollar compared to the euro, Airbus parent EADS reported a €705 million ($1.03 billion) net loss for the first nine months of 2007, significantly reversed from net income of €867 million in the first three quarters of last year.

Its third-quarter net loss of €776 million was widened from a net loss of €189 million in the year-ago quarter. Airbus posted a negative EBIT of €696 million for the quarter, more than double negative EBIT of €347 million last year. The losses came despite EADS' quarterly revenue improving 9% to €9.27 billion and Airbus's revenue increasing 10% to €5.87 billion.

"The sliding trajectory of the US dollar confirms the necessity to implement and to reinforce Power8 with additional measures," EADS CEO Louis Gallois said. He added that Airbus expects to have achieved annual savings of €300 million by year end from the restructuring program and is "progressing" in selecting partners to take partial or total control of a number of industrial plants. But he noted that Airbus suffered a "negative US dollar impact" of €660 million during the year's first three quarters. Its nine-month EBIT was a negative €677 million, reversed from a positive €1.15 billion last year.

Airbus received 854 gross orders through the year's first nine months, led by 525 A320 family aircraft, and delivered 330 aircraft, up slightly from 320 delivered through the first nine months of 2006. Its order book as of Sept. 30 totaled 2,994 valued at €248.5 billion, up from 2,553 valued at €210.1 billion at the end of last year.

EADS said it is encouraged by a continuing "strong" demand for commercial aircraft and projected its full-year EBIT will "break even." Its nine-month EBIT was a negative €343 million.