PARIS -(Dow Jones)- Franco-German aerospace group EADS (5730.FR) expects to announce new restructuring measures before the summer, Chief Executive Louis Gallois said Tuesday.
Speaking to journalists in Paris, Gallois said that outsourcing is " unavoidable" and added the extension of the 35 hour working week in France should be considered.
"We want to keep the heart of our activity in Europe, notably our advanced technology operations," Gallois said, while adding that the group also wanted to be present in areas protected from the fluctuation of the dollar.
Last summer EADS announced its Power 8 restructuring plan, which aims to create EUR2.1 billion of savings. However, the gains so far have been absorbed by the fall of the U.S. dollar against the euro.
The plan includes the sale of sites in Europe, but this has been delayed by the fall in the dollar and financing difficulties for the buyers.
"These delays are having no impact on Power 8," Gallois said. He added that the program is currently running ahead of its cash objective.
The EADS chief executive also said the group doesn't plan to bid for DRS Technologies Inc. (NYSE:DRS) (DRS) in competition with Finmeccanica SpA (Milan:FNC) (FNC.MI).
Concerning its A350 aircraft project, Gallois said financing is assured. He also said that the company doesn't need a capital hike.
-By Jocelyn Jovene, Dow Jones Newswires; +33 1 4017 1740; jocelyn.jovene@ dowjones.com
(William Horobin contributed to this item)
(END) Dow Jones Newswires 05-20-08 0442 Copyright (c) 2008 Dow Jones & Company, Inc.
