Airbus has been driving profits at EADS (Fr: EAD) for years and did so again during the first half. It claimed three-quarters of the €1.6bn (£1.4bn) underlying operating profit generated during the period, and in recognition of its domination, the company will be renamed Airbus Group next year.
That makes great sense. After failing to tie-up with BAE Systems last year, Chief executive Tom Enders has ditched the idea of expanding the defence business and embraced commercial aerospace wholeheartedly.
Airbus made €1.2bn in the first six months of 2013, over 40 per cent more than last year, and order intake more than tripled to €96.6bn, driving the order book up to €635bn. Most of that is Airbus, and EADS reckons gross commercial aircraft orders will top 1,000 this year. It will deliver well over 600 planes, too, and generate group underlying EPS of €2.50.
With Airbus the dominant business, EADS will merge military, space and security operations into one division and helicopters into a third. That could save €150m a year, say analysts. We'll find out more in a few months time.
