Booming Airbus powers EADS profits

Booming orders for Airbus, the European aircraft manufacturer, powered the maiden set of results yesterday from the European Aeronautic Defence and Space Company.

Booming orders for Airbus, the European aircraft manufacturer, powered the maiden set of results yesterday from the European Aeronautic Defence and Space Company.

Airbus, which is 80 per cent owned by EADS, and 20 per cent by BAE Systems, contributedmore than 90 per cent of the EADS group's operating profits.

The Airbus division of EADS produced revenues of 6.8bn euros (£4bn), and earnings, before interest, of 516m euros, for the six months to 30 June.

EADS, an aerospace giant, was formed from the merger of Matra Aerospatiale of France, Dasa of Germany and Casa of Spain in July.

Philippe Camus, joint chief executive, said: "We are enjoying strong activity in the commercial aircraft market that far exceeds our expectations." The first half saw orders for 234 Airbus aircraft and deliveries of 145 planes.

Colin Crook at Lehman Brothers said: "The most important thing is that the Airbus margins came in ahead of expectations, and the indications are that they will improve in the second half. Airbus is gaining market share at the expense of Boeing."

The EADS group recorded revenues for the period of 10.6bn euros. After taking losses on currency hedges into account, it made a loss, after interest, of 359m euros. Orders for the first half amounted to 24bn euros.