The crisis at Airbus over the development of the A380 superjumbo deepened yesterday after its parent company admitted it may have to go to shareholders to raise money as it delivered its third profits warning in less than a year.
EADS, the group that owns Airbus, said it
was "probable" that the aircraft maker would report a loss for 2006 and revealed that it could have to take additional financial charges.
The parent company said it may use its shareholders' annual meeting in May for a cash call, justifying fears voiced by BAE Systems as a reason for selling its 20 per cent stake in Airbus last year.
Hans Peter Ring, the finance director of both EADS and Airbus, said: "If the question is whether it is possible that we will ask the AGM for authorisation to go to the market, the answer is 'yes', it is possible."
EADS co-chairman Manfred Bischoff told a press conference in Frankfurt there were various ways of raising funds, implying that a rights issue was not necessarily the way.
EADS had previously said it would take the €4.8 billion ($9 billion) charges related to the problems over developing the A380 between 2007 and 2010. Yesterday the company said some of those charges would fall in 2006, leading to a likely loss for last year when the figures are reported in March.
More worrying for the market, the company also warned that "additional A380 charges not originally envisaged could apply as well".
It is thought that this is partly related to the Power8 scheme, which is designed to make the company "leaner, more integrated, more efficient and more productive". It is expected that the cost-cutting scheme would be put in place before more funds are raised.
Louis Gallois, president and chief executive of Airbus, said: "Our financial estimate is a consequence of our 2006 turbulences, in particular reflecting the effect of the A380 delay. We are also taking into account the launch of the A350 XWB and the financial impact of Power8, which we originally expected for 2007. Clearly we are cleaning the grounds and preparing for a new Airbus."
- INDEPENDENT
