Euro Costs vs. Dollar Revenues: How EADS Manages Foreign Exchange Exposure

Bin Xu (First Author), Ying Liu (Participant Author)

科研成果: 其它稿件案例

摘要

EADS, the parent company of Airbus, is the second largest aerospace and defence corporation in the world after Boeing. Though a latecomer, EADS surpassed Boeing in sales revenue in 2008. However, its profitability has always lagged behind Boeing’s. This is partly because EADS has invested heavily in the development of new aircraft, and partly because of the mismatch between dollar-denominated revenue and euro-denominated costs that makes EADS vulnerable to foreign exchange risks. According to EADS’s estimates, a 10-cent drop in the dollar against the euro would wipe 1 billion euro off its operating profit. This case focuses how EADS uses natural hedges and financial hedges to minimize the impact of exchange rate volatility on its operating profit.
源语言英语
页数13
出版状态已出版 - 1 1月 2011

案例编号

ACC-14-115

案例规范编号

ACC-14-115-CE

案例类型

Library

更新日期

2016-06-21

来源

China Europe International Business School

关键词

  • Aviation Industry
  • European Aeronautic Defense and Space Company(EADS)
  • Foreign Exchange
  • Risk Management

案例学科表

  • 会计
  • 金融与财务

案例行业表

  • 制造

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