EADS reports profit in 2010 turnaround

MUNICH: Europe's biggest aerospace firm EADS on Wednesday reported a net profit of 553 million euros ($740 million) in 2010, against a loss of 763 million in 2009.

The company was cautious in predicting a stable result for the current year, saying it expected further improvement in 2012. But it also warned that recent turmoil across North Africa and the Middle East could be potential threats.

"2010 was a year of significant progress for EADS. Commercial aircraft orders exceeded expectations and our cash flow generation was excellent," EADS CEO Louis Gallois said in a statement.

Revenue was up 7 percent at 45.8 billion euros with record deliveries of  510 commercial aircraft driven by strong demand in emerging markets, the group said.

European aircraft manufacturer Airbus is EADS's principal unit, alongside helicopter manufacturer Eurocopter and defence and security systems builder Cassidian.

While Cassidian has begun "to feel the first pressure" of Western governments tightening their defence budgets, the group said it expected a "clear improvement" in 2012, with bigger sales volumes, higher prices and a boost to the Airbus A380 programme.

With a record net cash position of 11.9 billion euros, EADS is banking on fresh acquisitions this year and is already in contact with several companies, EADS chief financial officer Hans-Peter Ring told reporters.

Airbus is expected to deliver around 25 A380 aircraft this year, against 18 last year, he added.

Hong Kong airliner Cathay Pacific on Wednesday said it would buy 15 A330-300s and lease two more Airbus A350-900s from International Lease Finance Corporation.

However, while the A380 programme is stabilising the group remained cautious over the long-haul A350, which is expected to be delivered in late 2013.

The group is also eyeing developments in the Middle East, which has been swept by popular uprisings that have roiled oil prices.

Markets for "helicopters, defence and public budgets still have to be monitored as well as potential risks linked to oil and commodity prices, air traffic in North Africa and continued currency issues," it said.