European aerospace company EADS posted a larger-than-expected net profit in 2003 as a strong fourth quarter at Airbus and a drop in charges offset losses in its space division.
EADS, which makes commercial jets, missiles and fighter aircraft, also pleased investors by announcing a 10 cent increase in its 2003 net dividend to 40 cents per share.
In its fourth set of annual results since it was formed in 2000 from a merger of France, Germany and Spain's largest aerospace firms, EADS posted a net profit of €152 million, up from a loss of €299 million in 2002, when results were penalised by €936 million in goodwill charges.
Operating profit rose 8 per cent to €1.543 billion, above the company's own target of €1.4 billion and a consensus forecast for €1.434 billion.
Airbus, which generates close to 90 per cent of EADS operating profit, delivered more planes in 2003 than its US arch-rival Boeing for the first time in their three decades of fierce competition.
In contrast with Boeing, which cut back sharply on aircraft production and laid off thousands of workers following the September 11th attacks in the United States, Airbus has weathered a sharp downturn in the civil aerospace market relatively well.
The commercial jet maker had a particularly strong fourth quarter, delivering 106 planes in the period - over a third of its 2003 total of 305 jets - and posting operating profit of €652 million, nearly as much as the €701 million recorded in the first three quarters of the year.