Dear Shareholders,
EADS’ 2007 results show two sides of one coin: the 2007 results are unsatisfactory, yet, our underlying business is performing well in terms of revenues and profits, and certainly free cash flow is exceptional.
I am not content with our numbers. EADS can, and must, deliver better. However, I think the Group has achieved some notable successes during the past year, establishing a firmer footing on higher ground.
In 2007, we addressed change head-on. The new governance allows management to “focus on execution” and thereby on improved results. Decision making is simpler, quicker, more transparent, and risks are being tamed. But there are more steps to take to attain true normalcy.
We also launched Power8 and dared to rethink the established Airbus industrial layout, bringing to the fore what lies at the core of our identity and competitiveness. We were pressed by the unrelenting pressure of the declining dollar, a growing threat which demands bold responses.
EADS has to prove quickly that steps are being taken to concretely meet the ambitious goals of Vision 2020 and manage the operational emergencies the Group is facing.
Since the start of 2008, a string of positive news announcements has shed rays of fresh hope: Columbus and the ATV were successfully launched into orbit, and the third A380 entered into service. A320 production is at record levels, while Airbus orders as well as Eurocopter and Defence & Security usiness are growing impressively.
Last but not least, we are collectively very proud the Airbus A330 played a large role in the selection of the Northrop Grumman-led solution by the US Air Force for their KC-45A tanker acquisition. On four counts out of five, it was deemed to offer a superior service in support of the American warfighter.
This event, of course, does not impact our report for 2007. Yet it certainly demonstrates that EADS continues to be a strong innovator and a vigorous global competitor. We have many exciting possibilities before us!
To reflect the Group’s sales successes, its financial strengths and its encouraging operational performance in legacy programmes, the Board of Directors is proposing a dividend of € 0.12 per share*. This proposal is a gesture of appreciation for your loyalty as shareholder and an expression of confidence in the outlook for the years ahead, despite remaining challenges.
* To be proposed to the EADS Annual General Meeting.
LOUIS GALLOIS
Chief Executive Officer of EADS
The information in the archives you are now accessing is outdated. It can be used to conduct historical analysis of EADS' performance or research the milestones and events that lead to its present situation. However, past performance should not be used as a sole basis for current investment decisions. EADS has no duty to update the historical information contained in the archived documents.
