Profit drop

EADS has announced a drop in its half-year profits following unfavourable foreign exchange rates and low A380 deliveries; however, it said that its outlook remained positive.

The company reported a net income of €378m (£327m), down from €403m a year earlier. Its net cash position remained strong at €8.1bn, but the group’s total order intake was down to €17.2bn, which, according to EADS, reflects a slowdown in the commercial sector.

Revenues stood at €20.2bn, a two per cent increase on last year, and half-year earnings before interest and tax (EBIT) were down to €888m as a result of adverse foreign exchange rates.

The second-quarter was more favourable, with the company’s earnings increasing by nearly 70 per cent following a high level of Airbus aircraft deliveries and strong results in the Astrium division.

However, the company incurred a loss of €191m on earnings as a result of continuing delays to the A400M military aircraft programme.