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Airbus restructures defence and space operations

Europe's largest aerospace group halts its efforts to diversify into security and defence electronics.
September 17, 2014

Shares in Airbus Group (FR: AIR) climbed following the news that it would streamline its defence and space business in an attempt to resurrect profit margins hit by weak European military spending. The European aerospace group confirmed that it would sell six units to generate about €2bn (£1.6bn) as part of its plan to refocus its defence and space operations on satellites, launchers, military aircraft and missile systems.

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The company plans to divest the likes of Fairchild Controls, Rostock System-Technik, AvDef, ESG, and Atlas Elektronik, which is expected to take between 12 and 18 months to achieve at fair valuations.

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