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EADS Confirms Operating Margin Will Remain Below 10 Percent For The Foreseeable Future

by: admin
December 28, 2007

Category: EADS, Restructuring | RSS 2.0

According to a report in a German newspaper, EADS does not expect to reach an operating margin of 10% until 2015. I’d be amazed if they attain it then, because EADS has never attained an operating margin this high before. Its best performance ever was in 2005, when it had a margin of 8.3 percent. Since then, margins have plunged due to the rise in the Euro, and troubles at Airbus. Although, EADS has taken some steps to improve their business, such as selling six Airbus plants, it is clear from this forecast that the company has a long way to go. Given that a prediction of operating margins seven years ahead has little credibility, what EADS is really saying is that there will be no margin recovery for the foreseeable future.

More details on the story can be found at Agency France Presse and MSNBC

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