The largest aerospace group in Europe – Airbus Group NV revealed that it plans to focus its defence activities primarily on space launchers and satellites, military aircraft and missiles. The France-based company shared it intends to sell a group of assets as part of a restructuring strategy that includes significant lay-offs.
“The portfolio review is a logical next step in the overall transformation process,” Bernhard Gerwert, chief executive officer of Airbus Defence and Space, said in the statement, which was cited by Bloomberg. “It will strengthen Airbus Defence and Space’s business core, unlocking its full potential to drive the defense and space industry forwards.”
According to the companys statement, the Defence and Space unit would dispose of its communications business, some subsidiaries and stakes held in other companies in order to become more focused on its own space and defence operations. The division, which has an annual revenue estimated to around €14 billion ($18.1 billion) and a workforce of 40 000 employees, explained that space, missiles and related systems and services are considered as its core business, where further investments are planned.
Airbus shared that it intends to sell its Professional Mobile Radio secure communications operations. The company also confirmed plans to dispose of its 49%-stake in the submarine supplier Atlas Elektronik.
In December 2013, the French company revealed that it plans to slash its defence units workforce by 5 800, marking the companys largest staff reduction in 5 years. These cuts amount to about 15% of the divisions headcount and include closing some of Airbuss facilities located in France, Germany, Spain and the the U.K.
Airbus Group NV was up by 0.14% to trade at €48.99 per share at 9:52 GMT in Paris, marking a one year change of +8.67%. The company is valued at €38.04 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Airbus Group NV have a median target of €59.00, with a high estimate of €70.00 and a low estimate of €30.50. The median estimate represents a 21.65% increase from Fridays close at €48.50.
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