Airbus parent EADS posts loss on aircraft delays

Nov 8, 2007, 9:49 GMT

Munich - EADS, the parent company of Airbus, Thursday posted an operating loss of 343 million euros (503 million dollars) for the first nine months of the year, citing delays with the development of three of its main aircraft types.

Looking ahead, EADS said turnover was expected to decline for 2007 as a whole.

The figures were better than expected by analysts, and the company's share rose more than 5 per cent to trade at around 22.55 euros.

The group said it expected to break even for the full year on the basis of earnings before interest and tax (EBIT). Order intake had more than tripled, the company said, noting a 'strong commercial and operational performance.'

EBIT of a negative 343 million euros for the first nine months had been 'burdened by charges for new programmes and restructuring.' Last year EBIT stood at a positive 1.4 billion euros.

The company has been hit in recent weeks by a delay to its A400M turboprop military transport. The decline of the dollar has also impacted on its performance.

During the first half of the year it initiated its Power8 restructuring programme aimed at countering costs resulting from a delay of almost two years in delivering the A380 superjumbo aircraft.

There were also delays to the A350XWB, the company's answer to Boeing's Dreamliner.

Revenues for the nine months came in at 27.8 billion euros, little changed from the 27.5 billion recorded in 2006, on the basis of deliveries of 330 Airbus aircraft, up from 320 last year.