DGAP-Adhoc: EADS N.V.: Customer Nations and EADS Come to Principle Agreement on A400M

 | Source: EQS Group AG EQS Group AG 

European Aeronautic Defence and Space Company EADS N.V. / Agreement

05.03.2010 17:48 

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Customer Nations and EADS Come to Principle Agreement on A400M - Additional
Provision to be Booked

Ad-hoc release, Leiden, 5 March 2010 - The Customer Nations and EADS have
come to a principle agreement regarding the A400M military transport
aircraft with the intention to amend the original contract accordingly in
the coming weeks.

In this principle agreement, the Customer Nations agree to 

  - Increase the price of the contract by EUR2 billion;

  - Waive all liquidated damages related to current delays;

  - Provide an additional amount of EUR1.5 billion in exchange for a
    participation in future export sales (Export Levy Facilities).

  - Accelerate pre-delivery payments in the period of 2010 to 2014, a new
    schedule of which will be finalised in the amended contract;

Based on this agreement, an estimate at completion of updated revenues and
costs including an assessment of risks, reviewed by the EADS Board of
Directors, leads to an increase of the A400M loss provision of EUR 1.8
billion pre tax for the full year 2009. The update of the provision is
based on a management assessment taking into consideration the principle
agreement between EADS and the seven Nations.

EADS EBIT* and net income will be negative in 2009 after incorporating this
charge. Results will be released at EADS' Full Year 2009 disclosure on 9
March 2010, including notes to the financial statements to be released with
the full year accounts comprising of more information about details of the
principle agreement including underlying management assessment. If
substantial changes on the assessment were to occur, EADS performance could
be significantly impacted. EADS will provide further information of the
amended contract once the negotiations are finalized.

The A400M cash flow profile for the coming years is still to be negotiated
in the contract amendment; all parties are willing to mitigate negative
cash impacts as far as possible.

EADS considers that this agreement provides a sound basis for a successful
evolution of the A400M programme. EADS will strive to identify
opportunities to significantly reduce risks in the A400M programme and to
deliver a state-of-the-art product within the new frame of the contract.
EADS thanks the nations for the decisive support they are bringing to the
programme through this agreement.

* EADS uses EBIT pre goodwill impairment and exceptionals as a key
indicator of its economic performance. The term 'exceptionals' refers to
such items as depreciation expenses of fair value adjustments relating to
the EADS merger, the Airbus Combination and the formation of MBDA, as well
as impairment charges thereon.

EADS is a global leader in aerospace, defence and related services. In
2008, the group - comprising Airbus, Eurocopter, EADS Astrium and EADS
Defence & Security - generated revenues of EUR 43.3 billion and employed a
workforce of about 118,000.

Contacts:

Pierre Bayle        +33 1 42 24 20 63
Alexander Reinhardt +49 (0)1 71 76 5 03 20
Martin Agüera       +49 (0)89 60 73 47 35
Philipp Lehmann     +49 (0)89 60 73 42 87
Jaime Perez-Guerra  +34 9 15 85 77 89


05.03.2010 17:48 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]

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Language:     English
Company:      European Aeronautic Defence and Space Company EADS N.V.
              P.O. Box 32008
              2303 DA Leiden
              Niederlande
Phone:        00 800 00 02 2002
Fax:          +49 (0)89 607 - 26481
E-mail:       ir@eads.net
Internet:     www.eads.com
ISIN:         NL0000235190
WKN:          938914
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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