EADS doubles dividend despite challenges EADS, the European aircraft maker, has doubled its dividend in a further sign that the company has turned a corner after a period dominated by large cost overruns on its biggest programmes. In his final financial statement as chief executive, Louis Gallois said the Franco-German company still had "challenges" on the project to build its next-generation Airbus A350 passenger jet and in its defence business. EADS is the parent company of Airbus. The company's airline customers have also been forced to temporarily ground some of their double-decker A380 aircraft to repair cracks on the wings. However, he said profits for 2011 were above expectations and that the company was "a healthy growth story." EADS had to cancel its dividend two years ago because of heavy cost overruns on its flagship A380 programme and the A300m military transport aircraft. But it restored a payout of 22 cents per share for 2010, and said on Thursday that it was increasing this to 45 cents for 2011. "I am pleased we can share the good performance and growth with our shareholders through a significantly increased dividend based on a payout ratio converging towards sector and industry peers," said Hans Peter Ring, finance director of EADS. As the group matures, this dividend policy shall serve as the orientation for the future. EADS shares have risen 40 per cent over the past year, the biggest gain on the Paris stock exchange, after the company secured record orders for its Airbus passenger jets. It said it had taken in €131bn of new orders in 2011, a 58 per cent increase on the previous year, largely off the back of the success of the launch of its A320neo, a more fuel-efficient version of its venerable short-haul jet. Revenues rose 7 per cent to €49bn, while earnings before interest and tax rose 38 per cent to €1.7bn, ahead of expectations. Net income rose 87 per cent to €1bn. At the end of the year, the company also had €11.7bn of cash, leaving it with the firepower to make further acquisitions. It made several bolt-on acquisitions, notably in services, last year, but has been stymied from pursuing larger deals because of its complicated shareholder structure, where Germany and France each control a 22.5 per cent stake. Concerns about state intervention have risen to the fore again recently after a German minister wrote to the incoming EADS chief executive, Tom Enders, to complain about a perceived bias in favour of France in the management and production capacity of the company. Mr Enders, a German, has insisted that he will act independently and executives have pointed to the fact that staff numbers are evenly balanced between France and Germany. However, Germany is worried about a decision by Mr Enders to shift the company's headquarters from Paris and Munich to Toulouse, home of Airbus. The passenger jet maker is seen as a French part of the business, while Germany is host to 80 per cent of the Cassidian defence business, which is struggling with government budget cuts. Mr Gallois had hoped to balance the group, so that revenues generated by Airbus were similar to those made by the defence business. But the strong order success for Airbus last year has strengthened its dominance. Of the company's €541bn order book at the end of 2011, some €475bn was accounted for by its Airbus commercial division. Meanwhile, ebit at the Cassidian division fell 28 per cent to €331m last year. Mr Gallois said: "We will also have to monitor the uncertain economic environment and the outcome of discussions with governments on the future of defence procurement programmes. It is essential that these talks, notably in Germany, show fast and sound results for both sides.