The European aerospace and defence company makes most of its revenue in dollars but reports earnings in euros, which has had a significant impact on its results while the Euro remained strong throughout the worldwide economic slump.
The euro fell below $1.25 on Friday, on concerns about the bailout of Greece and the impact on the currency of other deeply-indebted eurozone nations like Portugal and Spain. The single currency was trading around $1.50 in 2009, when Europe appeared to be less damaged by the financial crisis than the US or UK.
In the three months to the end of March, EADS’ earnings before interest and taxes (Ebit) fell 64pc to €83m (£71m), hit by the foreign exchange impact and costs linked to building the A380 super jumbo. Excluding those, Ebit was €150m. The European company does not break out pre-tax earnings.
Revenue rose 6pc to €9bn as Airbus delivered 119 commercial aircraft.
Louis Gallois, chief executive of Airbus, said he was “cautiously optimistic that our industry is slowly on its way back up.” He added: “EADS should benefit in the mid- and long-term if the Dollar trend is confirmed.”
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Tags: Euros, Euros Decline