#aerospace #EADS #aviation EADS, the European aerospace and defence company, has reported a 56% rise in its underlying operating profit for the first quarter, but it says there was “a large cash out-flow because of increased aircraft production and problems with a helicopter programme”.
However, finance director Harald Wilhelm said he was optimistic about the company’s prospects this year, adding that the A350 — Airbus’s new wide-body aircraft — was on course for its first test flight this summer and that no further delays to the programme were envisaged.
Mr Wilhelm said that earnings are rising as Airbus, the group’s main subsidiary, increases production of both its passenger jets and its A400M military transport aircraft. “This increase in output is, however, having a negative impact on cash flow because it involves a significant build-up of inventory.
This has been a notable issue at Eurocopter, which has slowed deliveries of its Super Puma EC225 aircraft used in the offshore oil and gas industry.”
Two EC225s came down in the North Sea last year, and UK regulators have imposed a ban on sea flights while a problem with the helicopter’s gearbox is investigated. This has contributed to falling sales and earnings at Eurocopter in the first quarter.