Profits for Airbus owner take nose dive
EADS, the parent company of Airbus, is reporting that its first quarter profit fell 40%. Why? Stephen Beard reports.
An Airbus A380 lands at the airport in the northern German city of Bremen. (David Hecker/AFP/Getty Images)
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The owner of European plane maker Airbus delivered a disappointing set of numbers this morning. EADS says first-quarter profits were down 40 percent. From London, here's Stephen Beard.
STEPHEN BEARD: Airbus delivered 5 percent fewer aircraft in the first quarter. Prices were lower too, and that further depressed revenues. Penalities for late deliveries account for the rest of damage to the bottom line.
Even more worrying for Airbus is the future flow of work. In the first quarter, after cancellations, they took orders for a total of just eight planes. Compare that with the 395 ordered in the same period last year. If it's any consolation, says David Buik of the BGC Group, Boeing isn't exactly flourishing either. He says both companies have been hit by the fall in air traffic, especially in business travel.
DAVID BUIK:People sit aboard tables and look at each other on a television screen rather than getting into a plane and spending $2-3,000 to go wherever they have to go.
EADS share price, already down 60 percent since last year, fell further this morning.
In London, this is Stephen Beard for Marketplace.
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