Sometimes, a competitor's results can give more insight into a company's situation. In this case, European Aeronautic Defence & Space Co. NV (EADS) reported a first-quarter loss due to problems with its commercial aircraft division Airbus, the world's biggest planemaker. The Airbus division struggled with delays and rising costs on the A380 superjumbo as well as a weak dollar. It is the third consecutive loss EADS is reporting, although it beat analysts' projected loss.
The Chief Financial Officer of EADS had already told shareholders last week that the Airbus unit is expected to post another "significant" loss this year, but could return to profitability in 2008.
Compare this to Boeing Co.'s (NYSE: BA) first quarter results reported late April, where the company posted a 27% rise in profit, beating analysts estimates. In the first quarter, Boeing booked orders for 185 commercial planes, beating Airbus by 51, and it increased shipments of the 737, its best-selling model, by 15%.
Also, orders for Boeing's new fuel-efficient 787 are soaring with over 500 orders; it is the company's most successful aircraft introduction ever. Airbus will not have an answer in time, meaning Boeing might regain the lead in commercial aviation next year. Airbus's answer, the A350 XWB, will only enter service five years after the 787 begins commercial service in 2008.
Boeing just keeps looking better.
EADS posts loss due to Airbus, Boeing looks good
Posted May 10th 2007 12:35PM by Melly Alazraki
Filed under: Earnings Reports, Boeing Co (BA)
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