Airbus Parent EADS Reports Heavy Losses (Victim of the Weak Dollar)

[icymist]

The weak US dollar has claimed its latest victim.


European aerospace and defence giant EADS reported a loss of €87 million ($130 million) in the third quarter of this year thanks to its strong position in the US dollar. The poor results reflected the challenging environment for the Airbus maker, in part because the company is paid dollars for the majority of aircraft it sells.

Despite keeping sales for the group in the third quarter steady at €9.53 billion, down just 2 percent from last year, the company reported a loss for the quarter, versus a profit of €679 million this time last year. The weak dollar even hurt the company's total order book, which came in at the end of September at €378 billion, after losing €14 billion to the revaluation of the US dollar.

"The long-term dollar level is an important driver for EADS' earning power over the coming years," said Hans Peter Ring, chief financial officer of EADS, in a conference call on Monday. Mr. Ring added that the continuous weakening of the dollar is not an immediate threat to the company, but it is challenging the company's financial performance overtime.
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[itsrobert]

1. and inferior planes

?

[Sen. Walter Sobchak]

2. Inferior to who? Tupolev? Certainly not Boeing!

Airbus makes airplanes, Boeing makes PowerPoint presentations about their "international supply chain integration" and to announce their latest delay.

[A HERETIC I AM]

3. Airbus can't get their C-130 knockoff in the air to save their asses.

http://en.wikipedia.org/wiki/Airbus_A400M

Of course, Airbus has no "International supply chain" do they? :eyes:

[Sen. Walter Sobchak]

4. Boeing can't get their A330 knock-off in the air

Airbus has been an international consortium since its inception, Boeing is just another American corporation that decided it could outsource everything and fleece the taxpayer on defense contracts to profit. The same fucking imbeciles who ran McDonnell Douglas into the ground are now repeating the same mistakes at Boeing - with largely the same results.

The problems facing the A400 are the result of political interference, particularly surrounding the engines.

Lets run down the groaning shelf of current Boeing delays, and lets just ignore the delays in their military projects which are just an embarrassment. Especially the 767 Tanker that so many around here want to give Boeing a no-bid contract for even though they couldn't deliver only a handful of serviceable aircraft to the Japanese and Italians.

The 787 is now delayed by atleast three years - the first flight was supposed to have occurred summer 2007 and it hasn't even flown yet closing in on 2010, the - The A380 also was delayed, but at least there was never any doubt it was airworthy having flown only a few months after rollout- the 787 appears it might pass the three year landmark after rollout without having flown since the latest defect was discovered in the wings a few weeks ago.

Then there is the 747-8 which is also significantly delayed and not only delayed - but at Boeing of the 21st Century it takes longer to develop a derivative design of an airplane that has been flying for forty years than it took to develop the original plane forty years ago!

[itsrobert]

5. How long have you been working for EADS?

You sound extremely partisan.

[Sen. Walter Sobchak]

8. What of the above isn't true?

Boeing has been in a death spiral since they merged with with McDonnell Douglas at which time they adopted the very business model that wiped out McDonnell Douglas in both the civil and defence markets chapter and verse in the name of maximizing shareholder value.

And in 2009 Boeing has reached the point at which they are barely functioning having laid off or outsourced the core competencies that made them successful for decades while becoming management heavy and lazy.

[Dreamer Tatum]

6. So a giant corporation is a "victim?"

Interesting.

[Romulox]

7. And yet they all tell us that a weak dollar is a "disaster" for Americans?

I've never understood how a strong dollar is supposed to be good for American workers. We trade jobs for plastic trinkets that cost $.10 less. :wtf:

Most telling is that every one of our trading partners goes into full-blown panic mode when their currency appreciates against ours.