On Wednesday, February 27, 2013,
the net profit of the European Aeronautic Defense & Space (EADS) was
announced as a 19% increase in 2012. EADS experienced most of its profit growth
from commercial sales (commercial jets and helicopters) rather than military
sales. Airbus, a company under the
control of EADS, saw a 19% increase in sales – representing 68% of the total
group revenue, which is relatively consistent with previous years. Economists
reveal that the company’s weakness lies in the lack of military spending in
recent years, which decreased sales in that sector. Chief executive Thomas
Enders expressed his contentment with his company for being able to provide
more than one kind of product (military and commercial). He states, “We are
under less pressure than other, pure defense companies.”
The European Aeronautic Defense
& Space is very fortunate to be a company that offers multiple types of
products. In this way, they can minimize their losses or damages in the case of
economic turmoil. Because of this, they are able to stay afloat during the
Eurozone crisis and even stay ahead of their competitors who only specialize in
one division such as military aircrafts. EADS is a prime example of the modern
company – a company that internalizes the different aspects of their business,
offering as many services as financially viable to make their company a one
stop shop for consumers.
Clark, Nicola. "EADS Profit
Soars 19 Percent for 2012." NYTimes.com. The New York Times, 27
Feb. 2013. Web. 7 Mar. 2013.
"Directory.ac." Directory.ac.
N.p., n.d. Web. 07 Mar. 2013.
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