EADS confirms concerns over A400M- Suppliers Share Wrap
EADS shares dropped 3.8% on Wednesday, as the company reiterated its guidance for the A400M program, confirming it has set aside a provision of EUR2.8 billion and cautioning that charges related to the delayed programme depend heavily on current negotiations could “substantially alter the financial statements of EADS in the future".
Meanwhile, customers for the A400M, including seven European nations, could reportedly advance commercial loans to Airbus to support development and delivery of the aircraft. Attempts to ensure the programme’s survival will be discussed at negotiations between Airbus and its customer nations, due to commence in Germany in Dec-2009. Reports indicate that European partner nations will press Airbus for more technical details, as well as prices and delivery timetables.
The A400M is due to conduct its first test flight in Dec-2009.
Aircraft interiors supplier B/E Aerospace, gained 3.3% yesterday, while Aercap (+2.7%) and Genesis Lease (+2.8%) also moved up solidly.
Selected Aviation suppliers’ daily share price movements (% change): 25-Nov-09