EADS sky high as profits jump fivefold

European Aeronautic, Defence & Space Co. (EADS) reported its first half net income rose fivefold to 594 million euro from 109 million euro in the same period a year ago.

Full-year earnings rose from 2.5 billion euro to 2.7 billion euro, while interest and tax jumped to 1.4 billion euro from 723 million euro a year earlier, the company said in a statement.“Our key programs, particularly at Airbus, continue to command our utmost attention,” Chief Executive Officer Tom Enders, presenting his first results said in the press release. “On A350 especially, maturity of sections delivered to the final assembly is of key importance to us as we prepare for a robust production ramp-up,” Enders said.EADS revenue added 14 percent to almost 25 bln euro. Airbus, which generates about two-third of EADS revenue, should deliver 580 aircraft this year, 10 more than previously projected, with order intake outpacing handovers. Airbus will deliver 30 A380 superjumbos this year. However the number will fall below that level in 2013, Enders said, adding that he doubts the model will reach its target of 30 orders in the current 12 months. EADS shares rose 2.28 euros to 30.49 euros on the news on Friday, the sharpest gain since March 8, and were trading 7.4 per cent higher at 30.31 euro.Annual earnings should now amount to 1.95 euro a share versus the previous 1.85 euro. EADS raised its full-year earning guidance two days after Chicago-based Boeing boosted its full-year profit forecast.EADS is currently controlled by a partnership of German carmaker Daimler, French media firm Lagardere and the French state. In March Germany said it would buy a bigger stake of up to 12 per cent of EADS from Daimler and private banks in a sign it wants to defend national interests in the European aerospace group.