February 27, 2013
European aerospace group EADS predicted higher profit in 2013 as it confirmed an upswing in 2012 driven by efforts to halt excess costs and by strong deliveries of passenger jets.
Operating profit rose by a greater-than-expected 68% to 3 billion euros ($3.92 billion) last year on revenue up 15% to 56.5 billion, EADS said on Wednesday. Net profit also grew 19% to 1.2 billion.
For 2013, it targeted 3.5 billion euros in operating profit but an even sharper rise in earnings per share after a planned share buyback linked to a shake-up of its core shareholdings.
The results came weeks after Chief Executive Tom Enders predicted a “very significant improvement” in revenue and operating profit as all divisions from Airbus jetliners, to helicopters, defence and space exceeded company targets.
In November, EADS forecast that full-year revenue would grow more than 10% and that earnings before interest, tax and non-recurring charges would reach around 2.7 billion euros, against 1.8 billion in 2011.
Analysts were on average expecting revenue of 54.88 billion euros and net income of 1.475 billion, according to a Thomson Reuters I/B/E/S analyst poll.
Jetliner production has largely ridden out the economic crisis due to rapid airline growth in emerging markets.
U.S. rival Boeing recently posted fourth-quarter results above expectations, thanks in large part to its ability to speed up jet production and keep costs down.