The European Aeronautic Defense and Space Company or the EADS was created by the combined will of several states to be competitive in the space and aeronautics sector. Yet, at the beginning of the 1990s, many concentrations were developed on the American market like Northrop and Grumman which merged in 1993, Raytheon and BAE Business Jets in 1994 and Lockheed and Martin Marietta in 1996. This will expressed by the German, French and Spanish states resulted in a merger of three companies: the French aerospace company Matra SA, the Spanish Casa and the German Daimler Chrysler aerospace. The challenge was difficult because it was about "mixing" different economies and cultures. Moreover, the management was designed to be bicephalous, which means that the two Chief Executives Officers were of different nationalities, and had two different ways of management. For several years, EADS has been facing many challenges, like the delay of delivery of the A380, the competition with Boeing, illegal insider trading, the financial crisis and so on. The following report gives an overview of the EADS Company, its managing system, and finally we analyze its finance and provide some recommendations.
[...] - Governments of the world and armies for the Defense and Security division, Astrium division, Military Transport Aircraft Division and also Eurocopter. Suppliers[2] The EADS Sourcing Vision is to deliver competitive advantage by winning, integrating and developing relationships with the world's best suppliers. Corporate Sourcing assumes the role of a strategic architect, coordinating the sourcing strategy of the individual EADS divisions and units and determining the general terms for relationships with the EADS suppliers. The main mission and objectives of the Corporate Sourcing function are: • To ensure the consistency of EADS sourcing strategy as part of the overall EADS strategy. [...]
[...] EADS presentation Creation of EADS and its activities Context EADS (European Aeronautic Defense and Space Company) was created on July through a sponsorship of three chiefs of government: José Maria Aznar from Spain, Lionel Jospin from France and Gerhard Schröder from Germany. This merger offered a major political interest. It was a question of endowing Europe with a giant in aeronautics to compete with foreign groups, especially Americans ones. The group EADS was formed by the merger of three companies: Aérospatiale Matra SA (France), Casa (Spain), and DaimlerChrysler Aerospace (Germany). Each of these companies was a leader on its home market. Further to this merger, the aeronautic European market counted four players: EADS, Thales, Finmeccanica and BAE Systems. [...]
[...] So the share strongly fell à 16.1 Euros). For the first half year of 2008, the revenues were of 19,739 M € despite an unfavorable US dollar impact, supported by an important revenue recognition in relation to the A400M program and a large number of orders. The net income is positive with € 403 million, and the cost of Research and Development decrease to € 1,130 million. (According to the annual consolidate income statement from the websites: http://www.reports.eads.com/2007/en/book2/4/3/2/1.html and http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=I NT&symbol=EAD.PA ) Ratios Company Industry Sector The quick and the current ratio determine how fast a company can pay its bills, if it has enough liquidity. [...]
[...] Headquartered in Waltham (England), it is the n°5 in the world. - Thales is a world leader in mission-critical information systems for the Aerospace, Defense and Security markets. It is a French supplier for EADS but also a competitor in the field of missiles and security. - Finmeccanica is the main Italian industrial group operating globally in the aerospace, defense and security sectors, and is one of the world's leading groups in the fields of helicopters and defense electronics. It is also the European leader for satellite and space services as well as having considerable know-how and production capacity in the energy and transport fields. [...]
[...] The remuneration and nomination committee makes recommendations to the Board of Directors regarding appointments of the EADS Corporate Secretary, the members of the Airbus Shareholder Committee, and the chairmen of the Supervisory Board (or similar organ), of other important Group member companies and business units, remuneration strategies and long-term remuneration plans and decides the service contracts and other contractual matters in relation to the Board of Directors and Executive Committee members. IV. Financial analysis Since 2006, the results of EADS are difficult and disappointing. Despite an increase in the revenues at € 39.4 billion, l' EBIT[3] dropped to € 399 million. [...]
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