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CORRECTED - EADS details H1 currency options

Wed Jul 30, 2008 11:00pm IST
 
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(Corrects headline from "EADS details H1 dollar option purchases" to "EADS details H1 currency options". Also corrects in story U.S. dollar call options to euro call options)

PARIS, July 30 (Reuters) - European aerospace group EADS (EAD.PA: Quote, Profile, Research) said on Wednesday it had bought $7 billion worth of plain vanilla currency options to the end of June with a maturity between 2010 and 2012 to help tackle dollar weakness.

A spokesman said the options purchased, part of a dollar-hedging programme, were euro calls.

The Airbus parent has been hit by a slide in the U.S. currency, which is the benchmark for most aircraft sales.

EADS said its dollar hedging rates were deteriorating, hurting its future profitability.

Finance Director Hans Peter Ring said in a conference call that EADS had decided to add plain vanilla options to its hedging techniques in the first half to try to capture the upside from any potential strengthening in the dollar.

The option purchases were detailed in slides for the call.

EADS said with its first-half results earlier on Wednesday that it was taking "decisive actions" on currency hedging.

In the first six months of 2008 a negative U.S. dollar impact of around 700 million euros led to loss-making contract adjustments and put pressure on the group's operating profits, EADS said.

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