EADS faces euro-crisis cash management headache


European aerospace group EADS is moving to adjust its currency hedging and cash management in the face of Europe’s financial crisis and now sees “real issues” emerging in one of its host nations, Spain, said its finance chief.
“Clearly the political situation in the euro crisis around us is the biggest concern coming from the macro environment, and this together with execution of our (aerospace) programmes are probably the two big risks into future,” Finance Director Hans Peter Ring said when asked about the threat of a Greek exit from the European single currency, Reuters reports.
“Now in Spain we also see upcoming real issues,” Ring told reporters on a conference call. “This is an ongoing concern and something where we have to adapt ourselves as a company, which we are doing in terms of hedging and cash management.”
“This is one of our big headaches today because we have seen a lot of deterioration of counterparties, i.e. banks, over the last two years and it has become much more difficult to deal with such an environment.”

Ring was speaking after EADS, the world’s second-largest aerospace group founded from a merger of French, German and Spanish interests in 2000, took a first-quarter charge of 158 million euros ($201.8 million) to deal with recent Airbus A380 wing cracks.

Ring said it faced further such charges until a long-term fix had been implemented, probably well into next year.