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EADS narrows losses
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March 19, 2001: 4:56 a.m. ET
European aerospace group EADS narrows losses, raises profit goals
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LONDON (CNNfn) - Europe's largest aerospace company EADS said on Monday full-year losses narrowed 13 percent as sales of Airbus planes offset currency losses.
The European Aeronautics, Defence and Space Company (EADS) posted a pro-forma loss of  909 million compared with 1.05 billion in 1999.
The company, which was created last July from the merger of Aerospatiale Matra of France, Germany's DaimlerChrysler Aerospace and Casa of Spain, said profit from operations fell slightly to 1.4 billion from 1.44 billion.
The company's earnings are expected to turn positive after the restructuring to marry three companies is complete and huge research and development costs begin to pay dividends.
EADS owns 80 percent of aircraft maker Airbus and derives roughly 60 percent of its sales from Airbus planes and almost 75 percent of profits.
"The figures presented today demonstrate that EADS delivered and even exceeded its first business year profit targets, proving that our merger is already a success," said Chief Executive Officer Philippe Camus. "For the future, the record level of orders gives us an exceptional visibility."
The company said it lost 1.4 billion in 2000 on hedging the value of the euro versus the dollar compared with a loss of 1.9 billion in 1999.
EADS raised its target for operating margins to 10 percent from 8 percent for 2004 because of faster-than-expected business growth, cost-cutting from the merger and the strength of the U.S. dollar relative to the euro.
At the end of 2000, its order book had reached a record 132 billion, up 29 percent from a year earlier. It includes 66 firm orders for the Airbus A380, or super-jumbo, the company said.
EADS (PEAD) shares rose 1.3 percent to 23.09 in Paris after the earnings were announced. 
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