spacetoday.net: EADS space division reports loss, plans layoffs

Posted: Mon, Mar 10, 2003, 5:02 PM ET (2202 GMT)
The European Aeronautic Defence and Space Company (EADS), Europe's largest aerospace company, reported Monday that its space division recorded a significant loss in 2002 and plans to layoff nearly 20 percent of its workforce. EADS' space division had a loss of 268 million euros (US$295 million) on revenue of 2.22 billion euros (US$2.44 billion) in 2002; the division had a loss of 222 million euros (US$244 million) on 2.44 billion euros (US$2.68 billion) of revenue in 2001. The company blamed the loss on the "further deterioration" of commercial space markets, the cancellation of a satellite construction contract with Intelsat, and losses on some programs. The company, which recently took complete control of satellite manufacturer Astrium and is also a major subcontractor for the Ariane 5 launch vehicle, said it plans to implement a restructuring program that will lead to the layoffs of 1,700 people, about 16 percent of its workforce. The company had previously announced plans to layoff 1,600 people; the new layoffs will be on top of those. EADS is also planning to take a 200 million euro (US$220 million) restructuring charge for its space division in 2003.