Europe’s largest aerospace company, swung to a larger-than-expected net profit in 2003 as a strong fourth quarter at its Airbus plane-making unit and a drop in charges offset losses in its space division.
EADS, which makes commercial jets, missiles and fighter aircraft, also cheered investors by announcing a 10 cent increase in its 2003 net dividend to 40 euro cents per share.
In its fourth set of annual results since it was formed in 2000 from a merger of France, Germany and Spain’s largest aerospace firms, EADS posted a net profit of 152 million euros ($185.4 million), up from a loss of 299 million in 2002, when results were penalized by 936 million euros in goodwill charges. In 2003, EADS also began to see the benefits from a ramp up of missile and fighter programs.
Operating profit in its defense division surged 40 percent to 171 million euros. These gains offset a 400 million-euro operating loss in its space division. The space division of the European Aeronautic Defense and Space Company (EADS) recorded a sharp loss in 2003, but saw its prospects for the future improve.
EADS Space reported a loss of 400 million euros in 2003 compared to 268 million euros in 2002. However, nearly three-quarters of the loss, 288 million euros, came from a planned restructuring charge the company took in 2003, leading EADS to conclude that the operational performance of the division improved in 2003.
The space division recorded revenues of 2.424 billion euros in 2003, compared to 2.216 billion euros in 2002, although in 2003 EADS owned 100 percent of satellite manufacturer Astrium, compared to 75 percent in 2002.
The division would have actually had revenues of 2.617 billion euros in 2002 had it owned 100 percent of Astrium then. EADS has been slashing jobs and restructuring the division and has said it expects it to break even at the operating level this year.
