The Richest Woman in the World: How Gina Rinehart Earns her Billions
Preserve Your Budget by Freezing Foods -- Savings Experiment
The initial evaluation of Airbus' announcement Monday of a production delay for its new A400M military plane was that it will not immediately affect the outlook for Boeing (NYSE: BA). It does, however, raise concerns about potential production delays in other Airbus programs, including commercial jetliners, stemming from resource diversion.Shares of Airbus's parent EADS plunged 1.17 euros to 21.72 Monday after Airbus announced that production delays for the A400M, which is designed to carry about 120 paratroops and 2 military helicopters, will add about 1.4 billion euros, or $2 billion, to the program's cost. Analysts now expect Airbus to deliver its first A400M in 2010, about a year late.
Moreover, while Airbus' commercial and military projects are time-line distinct, the A400M delay could impact Airbus' civilian A350 commercial jetliner, which competes with Boeing's 787 Dreamliner, Citigroup global Markets Analyst David Perry told Bloomberg News. The biggest concern "is that the delays and technical problems on the A400M mean that vital engineering and research and development resources will be diverted from new civil programs until at least 2010,'' Perry said.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
