BUSINESS NEWS
27 May 09. European Aeronautic Defence & Space Co., the region’s biggest aerospace company, has “shown interest” in buying a stake in Korea Aerospace Industries Ltd., according to Doosan Group. Still, no negotiations are on-going, Bae Kyun Ho, a Doosan spokesman, said by phone in Seoul. Edaily said earlier today that talks had begun, citing an unidentified Doosan official. Doosan Group’s Doosan Infracore Co. has said it wants to sell its 20.5 percent stake in Korea Aerospace to focus on other businesses. Korea Development Bank is also selling its 30.5 percent stake in the planemaker to recoup its investments. Korea Aerospace supplies wing parts for A320 planes made by EADS’s Airbus SAS unit. The company will supply components for Airbus’s under-development A350 XWB. Doosan Infracore rose 1.5 percent to 17,100 won as of 11:36 a.m. in Seoul trading, compared with the benchmark Kospi index’s 1.2 percent gain. Korea Aerospace, which builds military training jets, has drawn up plans to develop a 90-seat regional passenger aircraft by 2015 followed by a 70-seat model by 2018. The Sacheon, South Korea-based company aims to double sales by 2011 by winning non- government contacts, it said on April 30. Hyundai Motor Co. and Samsung Techwin Co. also own 20.5 percent stakes in Korea Aerospace. The planemaker plans to hold an initial public offering in 2011. (Source: Bloomberg)
27 May 09. EADS repeated its forecast for lower earnings this year as the global recession restrains demand for aircraft. EADS, the parent of planemaker Airbus SAS, expects earnings before interest and taxes to decline from the 2.8bn euros ($3.9bn) achieved last year, Chief Executive Officer Louis Gallois told shareholders today at the company’s annual meeting in Amsterdam. Ebit will remain positive, he added. The CEO’s statement, broadcast via the internet, reiterates guidance given by Paris- and Munich-based EADS on May 12. Chief Financial Officer Hans Peter Ring said then that revenue will be little changed, and research and development costs will increase to about 3bn euros from 2.7bn euros in 2008. “For 2009 I would say that the impact will be moderate,” Gallois said. “The critical year will be 2010.” EADS was trading up 5.1 percent at 11.62 euros as of 5:09 p.m. in Paris. The stock has declined 3.4 percent this year, valuing the company at 9.47bn euros. The company said May 12 that it can’t gauge demand or earnings beyond 2009 as airlines cancel or defer Airbus orders and costs from the delayed A400M escalate. Gallois said today that the military-transport plane is progressing toward its first flight, though he didn’t give a date for that milestone. Conserving cash is critical in the current economy, EADS Chairman Bodo Uebber told shareholders today. (Source: Bloomberg)
25 May 09. Dassault Aviation has no intention of taking a back seat in decision-making at Thales, after the maker of the Falcon business jet invested more than €1.6bn ($2.2bn) to buy 26 per cent of the French defence electronics group. Charles Edelstenne, chief executive of Dassault Aviation, told the Financial Times in his first interview since closing the Thales deal that he expected to hold frequent meetings with the new management installed at last week’s annual meeting. (Source: FT.com)
21 May 09. Tata Motors is expected on Monday to obtain the agreement of its banks to roll over about $1.05bn in debt, rescuing India’s largest carmaker from the brink of default. The extension of the loan until the end of 2010 will complete the refinancing of a $3bn bridge loan Tata Motors took out last year to finance its acquisition of Ford’s Jaguar-Land Rover marques. The loan is due next Friday. (Source: FT.com)