Restructuring and Cost Saving Programmes
Power8 - Turnaround Programme
At the beginning of 2007, Airbus launched a four-year restructuring programme referred to as “Power8”, with the goal of achieving EBIT* contributions of € 2.1 billion from 2010 onwards and an additional € 5 billion of cumulative cash flow from 2007 to 2010. As part of the planned measures under Power8 to reduce overhead costs, and specifically headcount, EADS recorded a restructuring expense of € - 624 million in EBIT* in 2007. In 2008, € 194 million of this provision has been reversed to reflect the current level of restructuring obligation which is lower than originally anticipated.
| Press Releases | Webcast | |
|
Conference Call on Power8 28th February 2007 |
EADS press release Airbus press release |
 Conference Call |
Power8 aims to build a “new Airbus”, a fully integrated company that will be leaner, more efficient and more productive. The result should be faster aircraft development and a clearer focus on Airbus’ core business – as aircraft architect and integrator, in addition to supporting the operations of its aircraft.
The Power8 turnaround programme will restore Airbus’s competitiveness. Its eight modules will reduce costs and streamline the industrial organisation. read more...
The programme achieved its goals for the year 2007, notably reducing annual costs more than the year’s € 300 million target. Additionally, integration took a step forward with the eight mostly national Centres of Excellence consolidated to four fully transnational organisations, covering fuselage and cabin, wing and pylon, aft fuselage and empennage, and aerostructures.
Savings realised pursuant to Power8 provided gross cost savings of € 1.3 billion in 2008 compared to the initial cost baseline. Given the progress and prospects achieved on the Power8 programme so far, EADS maintains the previously communicated Power8 targets regarding EBIT* and cash savings.
Power8 Plus
In 2008, EADS launched a Group-wide cost savings programme referred to as “Power8 Plus”, with the goal of achieving further EBIT* contributions of € 1 billion beginning in 2011-2012. Airbus is expected to contribute roughly two-thirds of the targeted cost savings, with the remaining portion to be contributed by the Eurocopter, MTA, Astrium and Defence & Security divisions as well as by EADS headquarters.
Future EADS
In addition, EADS is currently working on an integration programme with resulting streamlining and cost savings, referred to as “Future EADS”, with the goal of achieving a minimum EBIT* contribution of € 200 million in 2011-2012. It aims at further integration of the organisational structure, improvement of decision making processes and cost savings through the Headquarters and the Divisions as well as an enhanced interaction between Headquarters and the Divisions.
As part of this initiative, the former Military Transport Aircraft division has been integrated into Airbus under the name of “Airbus Military”.
Further Information |
In addition to historical information, this web site includes forward-looking statements. The forward-looking statements are generally identified by the use of forward-looking words, such as “anticipate”, “expect” “estimate”, “intend”, “plan”, “predict, “project”, “will”, “believe”, “should”, “may” or other variations of such terms, or by discussion of strategy that involves risks and uncertainties. These statements relate to EADS’ future prospects, developments and business strategies and are based on analyses or forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements represent the view of EADS only as of the dates they are made, and EADS disclaims any obligation to update forward-looking statements, except as may be otherwise required by law. The forward-looking statements in this web site involve known and unknown risks, uncertainties and other factors that could cause EADS’ actual future results, performance and achievements to differ materially from those forecasted or suggested herein. These factors include changes in general economic and business conditions and currency exchange rates, as well as those described in the EADS Registration Document 2008 - Section: Risk Factors.
