EADS has reported third-quarter losses and a sharp drop in nine-month earnings as it suffered from the effects of delays to the Airbus A380 programme.
The European aerospace group and Airbus parent says in a statement that it suffered a net loss of €195 million ($248 million) in the third quarter to 30 September, compared with a net profit of €279 million in the same period last year.
A loss before interest and tax of €239 million was also suffered, compared with a profit before interest and tax in the year-earlier period of €559 million.
The losses, which are largely the result of charges related to extensive delays in the A380 programme, came despite 14% growth in group revenues during the quarter, to €8.48 billion from €7.42 billion.
At Airbus alone, revenue increased 14%, to €5.41 billion from €4.77 billion, but a loss before interest and tax of €350 million was suffered by the airframe manufacturer, compared to a gain in the same period last year of €410 million.
For the nine-month period, EADS’ earnings before interest and tax dove 34% to €1.39 billion while net profit fell 33% to €848 million. Revenue increased 17% to €27.4 billion.
EADS says its results “reflect high delivery levels throughout the group as well as anticipation of the challenges ahead”, adding that the sharp drop in nine-month earnings was “attributable to the A380 delays and the US dollar devaluation against the euro”.
It adds: “EADS financials remain sound based on good performance of the Airbus delivery programmes and the helicopter, defence and space businesses. Nevertheless, the struggle to reverse the A380 problems imposes a severe burden on our financial performance. This together with the dollar devaluation requires drastic measures to remain competitive.”
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Source: FlightGlobal.com
