German funding row hits EADS cashflow
PARIS (Reuters) - EADS (EAD.PA) said on Thursday a row with the German government over launch funding for the Airbus A350 passenger jet had contributed to a 3-billion-euro cashflow deficit so far this year, but stressed it could breakeven on cashflow by end-year.
Finance Director Harald Wilhelm said talks continued with the German government over its decision not to pay a development loan for the new passenger jet and declined further comment.
Also weighing on the cash position of Europe's largest aerospace group were a backlog of A380 superjumbos waiting for delivery in the final quarter, a production ramp-up and extra inventory purchases as a buffer against supply chain problems.
Commenting on recent merger talks with BAE Systems (BAES.L) Wilhelm told reporters the attempt to create the world's largest defence company did not indicate any underlying concern about the strength of the commercial cycle for Airbus jetliners.
He said Airbus would however struggle to reach its target of selling 30 A380s this year, while sticking to its target of delivering 30 of the same double-decker passenger planes.
(Reporting by Tim Hepher, Cyril Altmeyer)
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