TROUBLED aircraft manufacturer Airbus has been rocked by another row – this time over whether its parent group should pay investors a dividend.
Aerospace group EADS deferred a dividend announcement last month when it reported a sharp drop in annual profits caused in part by increased costs associated with Airbus’s A380 superjumbo project.
It had said its board would recommend a dividend level at its next meeting but continuing disagreement between the group’s French and German factions have meant that has not happened.
The dividend is proving politically sensitive with unions, which are critical of investor gains at a time when Airbus is preparing a restructuring plan that will see 10,000 jobs lost in France, Germany, Spain and the UK, and some operations sold off.
Workers at the company’s wing-making plant at Broughton, near Chester, where more than 500 jobs are expected to go, have already staged a number of wildcat strikes after being told there will be no profit share bonus for them because of the losses reported this year.
They are also angry that some full-time jobs may be converted to agency positions at the site.
Employees at Airbus plants in France took further industrial action yesterday over the proposed job cuts. The half-day strike by up to 3,000 workers hit operations at the company’s Toulouse headquarters.
Reports from France say EADS has made no decision on the dividend in the absence of an agreement between core French and German shareholders.
France's conservative government has said it does not expect to receive a 2006 dividend for its 15% stake and stands ready to pump more cash into EADS.
But German co-chairman of EADS Manfred Bischoff, representing car firm DaimlerChrysler, hinted at continued differences over the payout when he cited France's willingness to forego a dividend as an example of state interference.
Airbus lost £1.7bn on the A380 last year, including compensation payments to airlines having to wait two years to get it.
However, EADS and Airbus must also absorb the costs of the restructuring, the impact of a weak dollar and more costs associated with the launch of both the A380-400 of which must be sold to break even – and the extra wide-bodied A350-XWB.
davidjones
