PARIS -(Dow Jones)- European Aeronautic Defence & Space Co. NV (EAD.FR) is "surprised" by the speed of recovery in the civil aviation market, following a flurry of orders for large commercial jets at last week's Farnborough Air Show, Chief Financial Officer Hans Peter Ring said Friday.
Industry indicators and macroeconomic data are all pointing to a revival of demand for Airbus jets, he said.
"The dollar is stronger and the financial sector has stabilized as well, so all of that goes in the right direction," he said in a conference call. If it weren't for some questions about the sustainability of the recovery in some countries, including the U.S., he said, the outlook could be described as "optimistic" rather than "cautiously optimistic."
Ring said that with a net cash position of EUR8.9 billion, EADS is in a strong position to look at external growth opportunities. The cash pile "gives us headroom for strategic moves," he said, adding that EADS is particularly interested in expanding its product portfolio, particularly in the security, defense and services areas. While he said there's no "magic number" for the size of a potential acquisition, "it could be of the magnitude of several hundred million euros, maybe up to EUR1 billion."
He said there is "nothing imminent," and that no major deal is likely to be concluded by the end of this year, noting that "discussions with targets are usually lengthy."
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