13 Oct 06. EADS today acquired from BAE Systems its 20 percent stake in Airbus for € 2.75bn. This value was determined by an independent expert during the put option process which was launched by BAE Systems in June 2006. EADS paid in cash from the existing resources of the Group. EADS is therefore now the sole owner of Airbus. EADS is a global leader in aerospace, defence and related services. In 2005, EADS generated revenues of €34.2bn and employed a workforce of about 113,000.
12 Oct 06. The German government is ready to take a stake next year in European aerospace company EADS to protect national interests if DaimlerChrysler decides, as expected, to cut its holding from 22.5 per cent to 15 per cent After a regular meeting of the French and German cabinets in Paris, Angela Merkel, Germany’s chancellor, said she had “not ruled anything out” when it came to the carmaker’s wish to cut its stake in the Franco-German dominated group. Government officials said state-owned bank KfW was preparing a contract that would be ready to sign from the end of the year. Officials said the chancellery, finance and industry ministries in Berlin had agreed on the option to buy the 7.5 per cent stake worth €1.3bn in the parent of troubled aircraft maker Airbus. “We don’t want that stake to end up in the hands of [French President Jacques] Chirac or [Russian President Vladimir] Putin,” one official said, referring also to Moscow’s interest in having a say in the group. The German deliberations come at a sensitive time for EADS. It has joined US defence company Northrop Grumman to bid against rival Boeing to secure an order for about 200 tanker aircraft for the US Air Force. Aware that US lawmakers might object to an apparent “nationalisation” of EADS, officials stressed Berlin would keep its stake only until France cut its 22.5 per cent stake or a private German investor was found. The KfW option is not considered ideal, but officials said it reflected the slim chances of finding a private investor. (Source: FT)
13 Oct 06. GE announced today record third-quarter earnings from continuing operations of $5.1bn or $.49 per share, up 10% and 14%, respectively, from third-quarter 2005. Revenues from continuing operations were $40.9bn, up 12% from last year’s third quarter. “Our portfolio changes and long-term strategy are paying dividends,” said GE Chairman and CEO Jeff Immelt. “The markets where we compete continue to be favorable for GE and our businesses are experiencing significant tailwinds. “Our strong third quarter performance was led by our Infrastructure segment, where profits rose 24% on excellent performances across its portfolio including Energy, which is on track for the strong second half we expected. Sales of our Infrastructure products exceeded our expectations, creating long-term margin enhancement with future services revenue opportunities. Across the company, total orders were up 15% and our backlog of orders increased 21% year-to-date. We continue to build our capabilities around the world, with global revenues and developing country growth up 12% and 22%, respectively,” added Immelt. “Healthcare, GE Money and Commercial Finance all delivered strong performances. Industrial generated solid profits, in spite of lower margins at Plastics caused by higher than expected commodity prices,” said Immelt. “NBC Universal is making good progress in finishing the year on the upswing with positive momentum from the new primetime line-up. “Two years ago, we said we would focus on increasing organic revenue growth. For the third quarter, we generated 10% organic revenue growth – our seventh straight quarter of organic revenue growth at 2-3x GDP. Our leadership in technology is giving us the edge in winning big orders; our customer focus with Net Promoter Score (NPS) and Lean is expanding our businesses’
Financial Highlights (Continuing Operations): Earnings per share (EPS) of $.49, up 14%; Earnings of $5.1bn, up 10%; Revenues of $40.9bn,