EADS chief financial officer Hans-Peter Ring says the company maintains its target of a € 1.8Bn Ebit for fiscal 2008 for now

In an interview with Borsen-Zeitung, EADS chief financial officer Hans-Peter Ring says the company maintains its target of a € 1.8Bn Ebit for fiscal 2008 for now. Still, he acknowledges that new earnings guidance could be issued when EADS publishes its firsthalf figures at the end of this month. In the face of the ever-weakening dollar, Mr Ring says “it is true that our risks are increasing”. The € 1.8Bn forecast is based on an average euro rate at $1.45, but the euro has been above that level since February. Mr Ring adds that in this context, the company’s hedging conditions have “worsened” from year to year. Meanwhile, adds the CFO, EADS has been progressing well with the Power 8 cost-saving programme, despite difficulties in selling Airbus plants. “We are significantly above our target last year and will probably beat it this year too”, he says. Power 8 is designed to bring savings of € 2.1Bn by 2010. Mr Ring does not reveal details of additional cost-cutting measures or a “specific date” for an announcement. Commenting on the Pentagon’s decision to reopen the USAF tanker bidding process, he says: “We are convinced we have good chances, together with our partner Northrop Grumman, of retaining the award. We need to analyse the USAF’s requirements in details for the next bidding round, which luckily must be decided by the end of the year”. AFP (10/07), Reuters (10/07), AFX (10/07), Borsen-Zeitung