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Breakingviews: EADS profit lift-off held back by A380

Thursday, November 14, 2013 - 03:53

Nov. 14 - Airbus maker EADS is enjoying a surge in demand for civil aircraft, but hasn’t sold a flagship A380 in over a year. That weakness will make it harder to lift mediocre margins, says Breakingviews.

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Kwanzaa is breaking news ga yes should face up to its 8318 misery so says stuff breaking news Edward passes side of the economics editor joins an app. -- net profit up 36%. But what about dobbs host of -- EE. Is positive let's not get the wrong idea this is a company that has. Developed pretty clear lead in. -- orders and its orders they -- they raised -- -- and Fortis this year profitability is increasing from extremely low level. And -- a 350 program which is another -- the future of the company yeah program seems to be along on target Oakland you know from now with these things and -- -- -- -- -- -- -- cash generation -- so bad news is they're not generating cash they're -- cash at a pretty hefty clip for thirteen billion revenue company they're losing one and half -- of cash. But that's the wrap up cost. And the other bad news is indeed the 380. And back and and which we're looking at now that that seems to be the problem I'm just just very quickly what we compared with -- imagine what this this good Wisconsin comparison with banquet. Hold on orders but behind on deliveries of the story gently yet. And the 83 HC hasn't sold for yet. Yes not a single order for a year and they've got a few years backlog it's a slow plane to produce. But if they don't start making orders soon people are gonna really that the question is going to be race when this was a very expensive program indeed. You know aircraft are truly expensive projects -- it took I think -- a decade from 747 before rookies and which is that the former Jumbo jet. I'm so there's still hope but. It is starting to look -- really little bit nervous nerve wracking here because the treaty just doesn't seem to have a very clear niche it's not that much bigger than the 8350 or the dreamliner -- And it's a four engine plane. And four engines means twice as much maintenance and twice as much chances. It -- but if they felt that. And works for them. But as you say the -- is is is is this the instinct when it. It seems to me emirates Tom. -- wasn't for emirates would be really yeah that's exactly right in the and the rival airlines in the Middle East -- there is a kind of giant people moving. Industry there you take temporary workers from the subcontinent and move into the Middle East. Or to some extent as a shipping as. Ground and that there is a transport hub from Asia to to the rest of the world. And that's been the main source of demand and they continue to group that. Even they have not been. Sold buyers of that and -- they are also buying other flights that emirates of other planes so. It's it may disputed that niche cruise too small. You know there counselor that he. I would be very surprised at different accounts -- because invested so much money into it at this point and as I said. -- can change act as you said the 747 was. Given a decade now. The global economy is coming back now. This clearly. -- -- roll him in an and that in a resurgence of up for the a three AG. Maybe we need to give it a few years. Obvious that's you know whether we need to or not they're going to -- well let's let's hope that. Hope for them that it works out okay great -- many things about confront the full story of course our own. I 380 on the breaking news website for more gender setting inside. I watch our US show every let's hope that decent 1730 GMT IMAX withdrawal from this is voices.

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Breakingviews: EADS profit lift-off held back by A380

Thursday, November 14, 2013 - 03:53