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.
Production of the aircraft has been delayed as a result of engine problems and the group said that further negative impacts from the A400M programme were likely to be substantial.
Despite this setback, chief executive Louis Gallois said the company was in ‘good shape’ and will be sticking to its priorities of protecting cash and managing the order book and deliveries.
He added: ‘We welcome the commitment of our A400M launch customers to the programme. In partnership with our customers and our suppliers, we are now continuing to work hard in order to bring the A400M back on track.’
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