While work on the completion of the 2006 consolidated financial results is still ongoing, EADS management is estimating that the Airbus Division will probably deliver a negative EBIT contribution for the full year.The press reports that Airbus only won 824 new orders last year, compared to Boeing’s total of 1,050, the first time Airbus has fallen behind it American rival in five years.
Delays to the flagship A380 seems to be the main cause of Airbus’s problems.
The company said: “Certain one time charges in relation to settlements with customers, impairment of assets, or financial impacts of Power8 originally expected to occur in 2007 and after are now foreseen to be recognized as early as 2006.”
“Furthermore, additional A380 charges not originally envisaged could apply as well.”
“Nevertheless, on the Group level, the estimated positive EBIT* contributions from the other EADS Divisions, which deliver as planned, should roughly balance out the estimated negative EBIT* impact of Airbus for 2006.”
“All such estimates of EADS management are subject to the finalisation of the 2006 financial statements’ closing process and approval by the Audit Committee and the Board of Directors, expected on 8 March. The above estimates have not yet been validated by the auditors.”