EADS' yr profit at €1.37bn

The net profit figure was boosted by an exceptional gain linked to the changing of the legal status of aircraft maker Airbus, in which the company has an 80% stake, from a consortium to a private company.

Net profit before amortisation and exceptional items in 2001 was €936 million compared with a loss of €45 million in 2000.

Core earnings, measured as earnings before interest payments, taxes, the amortisation of goodwill and excluding exceptional items, rose by 21% in 2001 to €1.7 billion, the company said.

The rise was greater than an earlier company forecast of about 15% and was above a poll of analysts' estimates which ranged from €1.55 billion to €1.63 billion.

But the group warned that core earnings were likely to fall to €1.2 billion this year due to an increase in research costs and fewer deliveries by Airbus.

Sales in 2001 reached €30.8 billion, rising 30% from the previous year thanks largely to the 100% consolidation of Airbus into its accounts.

The company said that it estimated sales will fall by 2% this year on a constant dollar exchange rate basis because of an expected drop in the number of deliveries by Airbus to 300 aircraft from 325 in 2001.

The group is to offer a dividend for 2001 of €0.50/share.

In Paris, where stock in the company is traded, EADS shares soared 4.1% to €17.36 in morning trading, while the CAC 40 index of leading shares rose 1.1%.

"The market consensus had been that they would lower the deliveries forecast to 280 planes, and in fact EADS said it will still deliver 300," said one Paris trader.

"So the market is re-rating the stock, even though there is no indication about the outlook for 2003." - Sapa-AFP