=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2008/03/11/financial/= f035628D16.DTL --------------------------------------------------------------------- Tuesday, March 11, 2008 (AP) Airbus Parent EADS Reports Annual Loss By EMMA VANDORE, AP Business Writer (03-11) 10:55 PDT PARIS, France (AP) -- Airbus parent EADS reported annual losses of $684.16 million Tuesday, a year marred by the botched roll out of both military and commercial aircraft. European Aeronautic Defence & Space Co. NV returned to profit in the fourth quarter and said it would boost earnings further this year, though the guidance the company issued was below analyst expectations. EADS shares, which have plunged by a fifth since the beginning of the year, fell 6.8 percent Tuesday to at 16.10 euros ($24.75). "I am not content with the 2007 figures," said CEO Louis Gallois said in= a statement. "In 2007, we have prepared the future and we have cleaned up part of the past." The company reported a fourth-quarter net profit of 259 million euros ($397.31 million), after a 768 million euro loss in the October-December period the year before. The company recorded fewer charges in the quarter on the long-delayed A3= 80 superjumbo, which was finally delivered to Singapore Airlines in October. Airbus, based in Toulouse, France, posted a fourth-quarter operating loss of 204 million euros ($312.94 million) after a loss of 1.72 billion euros in 2006. For the full year, EADS lost 446 million euros, compared with a profit of 99 million euros in 2006. "I think that the worst is behind them," said Harald Liberge-Dondoux, an analyst with CM-CIC Securities in Paris. "We are not out of the tunnel. There will still be a few little pieces of bad news, but not of the same scale." For 2008, EADS forecast an EBIT of 1.8 billion euros ($2.76 billion) "reflecting higher comfort in its improving ability to drive profitability." Sales in 2008 are expected to top 40 billion euros, EADS said. In 2007, revenue was virtually flat at 39.12 billion euros ($60.01 billion), compared with 39.43 billion euros a year before. Citigroup and Merrill Lynch said EADS' guidance for the full year was below expectations. Delivery of the company's A380 superjumbo was set back for two nearly two years, cutting into profits. In November, Airbus announced a delay to its A400M military transport turboprop that could cost as much as 1.4 billion euros ($2 billion) in penalties and other charges. The slumping dollar has also sapped profits. EADS scored a major victory last month when, along with its U.S. partner Northrop Grumman, it won a $35 billion Pentagon contract to build refueling tankers for the Air Force, beating out Boeing for one of the biggest Pentagon contracts in decades. Boeing said Monday it would formally challenge Air Force decision. Asked to comment, Gallois said the selection process was "transparent, professional and fair." EADS has sold tankers to Australia, Saudi Arabia, the United Arab Emirat= es and is in talks with Britain. CFO Hans Peter Ring said a consortium led by EADS could complete a deal to supply midair refueling tankers to Britain in the coming days or weeks. EADS said earnings before interest and tax — a closely watched indicator — fell to 52 million euros ($79.77 million) in 2007 from 399 million euros in 2006. EADS said it doesn't foresee any further "material deterioration" on the development of the A350 XWB midsize, long-range plane or its A400M military yet, but added that such programs "are not without risk." EADS said it expects Airbus to deliver about 470 planes in 2008 compared with 453 in 2007. Deliveries will peak in 2011-2012, the company said. The company said it expects the commercial aircraft market to remain "resilient" in 2008, predicting Airbus' orders will fall to about 700. ----= ------------------------------------------------------------------ Copyright 2008 AP <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".