Eads stands by 15% growth target

EUROPEAN aerospace giant Eads stuck to its target of 15% growth in operating profits this year despite market turmoil and Monday's crash of an Airbus airliner in New York.

Sales in the nine months to the end of September rose 30% to e30.7bn (£18.8bn), aided by the first-time consolidation of Airbus UK, which makes wings for the company's jets.

Joint chief executives Philippe Camus and Rainer Hertrich said revenues increased in every division except space, which suffered a slump in demand for telecommunication satellites. Eads, which owns 80% of Airbus, said it was 'on track' for a 15% rise in earnings before interest and depreciation during 2001, based on an assumption of 220 airliner deliveries.

Airbus anticipates delivering 300 aircraft in 2002 but will 'be profitable even with significant variation in Airbus production rates' because of a hiring freeze and cost-cutting.

Airbus revenues rose 27% in the third quarter to e4.45bn and 40% in the nine-month period to e14.4bn. Stripped of the consolidation benefit, the increase was 12%.