EADS predicts share issue after Airbus red alert
Hans Peter Ring, the CFO of EADS and Airbus, says group will have to shore up finances as losses mount
Peter Ring has warned that he may have to go to the market for
additional funds after forecasts indicated that Airbus will post losses of
several hundred million euros in 2006.
The heavy losses are a result of heavy restructuring charges and costly
delays to the A380 superjumbo, Airbus parent EADS warned.
According to The FT
, analysts are predicting that a decision on whether to pursue a share
issue will be made in April and presented to the EADS annual meeting in May. If
the issue goes ahead, it is estimated that Airbus will aim to raise €5bn
Ring said the groups was considering ‘all financial instruments’.