LONDON — The sale of Airbus' defense electronics business could be concluded within days, company CEO Tom Enders has confirmed.
"We are in the final, final, stretch of taking the decision [on defense electronics], it should not be a question of months but hopefully days or weeks," the Airbus boss told reporters at the European aerospace company's annual results briefing in London.
The defense electronics activities include radars and a range of other sensors.
Plans to include a border security business as part of the sale were dropped last week due to sensitivities with two projects being undertaken in the Middle East — one of them being a troubled deal in Saudi Arabia.
Enders said the border control business was also creating complications with the sale of the wider defense electronics activities.
"It's not a strategic decision but a practical decision to keep it for the time being. Practical because it turns out to be overly complex in the disposal process of the defense electronic business," he said.
Airbus put the 'For Sale' sign up on several of its defense activities as part of a 2014 review of its business which emphasized a return to core programs in the military aircraft and space sectors.
Other defense disinvestments included its stake in naval systems supplier Atlas Elektronik.
At the time of the announcement the combined businesses had revenues of around €2two billion (US $2.2 billion). Euro.
The identity of the possible defense electronics buyer is not known at the this stage.
Last month the German newspaper Handelsblatt reported that the German government had approved the sale to US buy out groups Carlyle and KKR. The report was later denied by government sources.
The Airbus CEO made his comments about the defense electronics business as Europe’s largest aerospace company rolled out 2015 performance figures that saw group revenues rise 6six percent to €64 billion, Euro, mainly on the back of growth in the commercial airliner sector.
Airbus Defence & Space revenues were stable at €13.08 billion Euro for last year compared with €13.025 billion. Euro.
The 2015 figure came despite a €500 million Euro deconsolidation of launcher revenues with the creation of the Airbus Safran Launchers joint venture.
Enders voiced frustration over the slow progress on gaining regulatory approval for the space launcher joint venture.
Order intake for the defense and space activities were up 18 percent to €14.4 billion Euro compared with the previous year. Orders for A330 tanker/transport aircraft was one of the drivers for the strong backlog increase.
Services now dominate Airbus Defense &and Space revenues at 74 percent with platforms, including Typhoon, the C295 transport and the A400M only accounting for 26 percent last year.
Surprisingly, perhaps, the Typhoon combat jet didn't rate a single mention by Enders or his other senior executives on the platform for the results roll-out.
Airbus is a partner with BAE System and Finmeccanica in the combat jet program
Enders focused instead on the troubled the A400M airlifter program, saying he was dissatisfied with deliveries last year but hoped for a near doubling of aircraft being handed over this year,
"We delivered 11 aircraft in 2015. We cannot be satisfied with that level of delivery, we planned for more. ... The ramp up has to come through stronger in 2016," he said.
The Airbus boss said he was expecting 20 plus deliveries for 2016 but the actual number was subject to discussions with customers over national requirements and specifications.
So far, 23 aircraft have been delivered since France received the first A400M in 2013.
Two airframes have been delivered so far this year. A machine destined for France is the next scheduled to be handed over.
A total of 174 aircraft have been ordered by members of the seven-nation program involving Belgium, France,Germany, Luxembourg, Spain,Turkey and the UK. Malaysia is also a customer.
Aside from the industrial issues Airbus reported last year, the A400M also has technical questions regarding its ability being able to airdrop paratroopers on both sides of the fuselage simultaneously and its inability to refuel helicopters.
Email: achuter@defensenews.com
Andrew Chuter is the United Kingdom correspondent for Defense News.
