France's European Aeronautic Defence and Space Co. (EADSY.PK,EADSF.PK) on Wednesday lifted its full year earnings outlook, as the company reported a first-quarter profit with strong performances from Airbus, Eurocopter and Astrium divisions, despite strained defence markets in the Western world.
The company, popularly known as EADS, now expects adjusted earnings per share above 1.85 euros, compared to the previous projection of 1.65 euros per share. In 2011, EADS earned 1.39 euros.
The company expects revenues to continue to grow well above 6 percent. Airbus still expects to deliver around 570 commercial aircraft, including a targeted 30 A380 deliveries.
Louis Gallois, CEO of EADS, said, "Demand for commercial aircraft and civil helicopters remains healthy and our institutional business fared reasonably well despite European budget pressures and an uncertain economic environment."
Last month, EADS' rival Boeing Co. (BA: Quote) said profit in the first quarter climbed 58 percent as revenue grew 30 percent on increased commercial airplane deliveries. The company also raised its earnings forecast for the year, citing a reduction in a litigation-related reserve.
EADS said net profit was 133 million euros ($169.13 million) for the quarter compared to a net loss of 12 million euros last year.
The company recorded a one-off charge of 158 million euros in the quarter, as Airbus defined permanent fix to A380 wing rib feet issues. Excluding items, income surged 156 percent to 259 million euros.
Revenue increased 16 percent to 11.40 billion euros from 9.85 billion euros, driven by increased activity across all divisions. Defense revenues climbed 18 percent to 2.29 billion euros.
Order intake increased 92 percent to 12 billion euros mainly due to the A320neo order intake at Airbus. Airbus Commercial recorded 90 net orders compared to 1 net order last year.
The Airbus division recorded a 13 percent increase in revenue at 7.91 billion euros, helped by a 12 percent jump in Commercial revenues while Airbus Military revenues slipped 2 percent from last year. Airbus Commercial delivered 131 aircraft during the quarter, while Airbus Military delivered 4 aircraft.
Eurocopter revenues climbed 46 percent to 1.2 billion euros. The division delivered 72 helicopters compared to 81 deliveries last year.
Astrium revenues advanced 13 percent to 1.33 billion euros, mainly related to the initial inclusion
of the acquired Vizada group into Astrium.
Cassidian revenues advanced 5 percent, reflecting a favorable phasing of Eurofighter deliveries.
The stock closed in Paris on Tuesday higher by 1.06 percent at 29.03 euros on a volume of 1.73 million shares.
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by RTT Staff Writer
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