EADS profits down while shareholders get paid

EADS profits down while shareholders get paid
European aircraft manufacturer EADS has reported decreasing sales and profits for 2007. But shareholders will get additional dividends in return for their loyalty.

Revenues at EADS fell by one percent to €39.1 billion, the company reported in Amsterdam on Tuesday. Meanwhile losses amounted to €446 million. In 2006, EADS earned €99 million. Their earnings before interest and taxes (EBIT) margin reduced earnings from € 399 million to €52 million.

These numbers mean that EADS company Airbus is performing significantly lower than bank expectations, according to financial news service Dow Jones. Airbus had an EBIT margin of €111 million, and a net loss of €360 million.

According to company data, EADS plans to increase the EBIT margin this year to more than €1.8 billion, and increase profits by €40 million.

The company also said it would give board members a dividend of €0.12 per share.

“To distribute dividends – despite a deficit – is more than a gesture of acknowledgment for the loyalty of shareholders,” said EADS chief financial officer Hans Peter Ring. Despite the challenges, it’s a sign of confidence in the coming year, he said.