Weak euro brightens EADS, shares rise

Sharply lower first-quarter earnings from Europe's largest aerospace firm reflected the negative impact of tougher currency hedges taken out when the euro was on a high. The company's sales are mostly in dollars while it reports in euros.

Operating profit, down 64 percent to 83 million euros ($105.4 million), was also hit by concerns about costs on the A380 superjumbo, missing average market forecasts of 98 million.

But investors leaped on hopes that EADS, which once said its long-term existence was threatened by an overvalued euro, would be able to translate a recent slump in the currency's fortunes into improved profits once the currency hedges run out.

Read Full Article from Reuters

- Posted: 2010-05-14 13:17:04

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