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Full Version: Goldman Sachs sees EADS aircraft deliveries dowm 15% in 2010
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Aurora
http://www.marketwatch.com/news/story/gold...&dist=msr_1

QUOTE
. . . Goldman Sachs published a note listing three more reasons to sell into the current rally. The broker highlighted that the shares have bounced roughly 40% since they bottomed on Oct. 10. It said that against a backdrop of the worst air traffic it has seen (excluding wars and SARS) and very tight credit availability, aircraft deliveries in 2010 will fall by at least 15% and earnings per share will be much lower than consensus in 2009 and 2010. It added that EADS will burn an estimated 6.4 billion euros in cash over the next three years.


Request clarification of "will burn". Does this mean that they will have net outflows of (an estimated) 6.4 billion euros, i.e., in excess of revenues?
Stitch
I'm going to guess it's more a reflection that R&D spending will rise by billions of Euros as Airbus begins to bring the A350 program into service which will eat into the profits the revenues will be bringing and not that Airbus will be running in the red (at least to that level).
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