EADS beat the 1Q08 consensus earnings estimates on the strength of a 10% positive surprise in sales. The company also confirmed its FY08 estimates.[1]
The Air Force awarded a $35 billion dollar aerial refueling tanker contract to rival EADS NV and its partner Northrop Grumman. Boeing had been supplying the refuelers to the Air Force for almost 50 years and was expected to win the deal. The deal, which only would have supported 44,000 new and existing jobs at Boeing and more than 300 suppliers in the more than 40 states, is the first of three Air Force awards worth as much as $100 billion to replace its entire refuelingtanker fleet over the next 30 years. Boeing would have used Pratt & Whitney engines. Instead, EADS NV will use General Electric engines. Members of the US Congress are in an uproar about the idea of the contract being in foreign hands and are appalled at how many American jobs will be lost. The Northrop/EADS contract is expected to add just 2,000 new American jobs, compared to the 44,000 expected with Boeing in charge.
Airbus wins a $16 billion order from Qatar Airways for 80 A350XWBs.
EADS drops following an order cancellation from United Parcel Service (UPS).
EADS rises following the much anticipated release of the Power8 restructuring plan by CEO Louis Gallois. This indicates Airbus' confidence that the squabbling between French and German governments has subsided and that Airbus now enjoys political support in the event of labor union problems.
EADS down after Airbus acknowledges that it posted an operating loss in 2006 as a result of production problems with the A380 and associated penalty payments for late deliveries.
EADS shares drop after FedEx (FDX) cancels order of 10 Airbus A380 jets, choosing instead to order 17 Boeing 777s.
