EADS shares surge on better-than-expected results

PARIS (AFP) Jul 28, 2003
Shares in the European Aeronautic Defence and Space Co. (EADS) jumped over five percent Monday, lifted by the publication of first-half results considered by investors to be better than expected despite a net loss.

EADS shares were showing a gain of 5.11 percent at 12.96 euros in morning trading as investors digested the company's first-half results, published late Friday.

The company said high restructuring charges at its space division and a drop in deliveries by its aircraft unit Airbus Industrie had pushed it into a loss in the first half, posting a net loss of 66 million euros (76 million dollars) compared with a profit of 91 million a year earlier.

But analysts focused on the company's underlying earnings of 592 million euros, which, even though were 24 percent lower than the result from the first half of 2002, were better than their expectations.

Aurel Leven analyst Matthieu Viallet said that analysts had been expecting on average an underlying earnings of 430 million euros.

Presenting the company's results on Monday in London, co-chairman Rainer Hertrich said that its loss-making space division, which in the midst of restructuring would break even next year.

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