EADS enjoys Q2 profit jump

EADS     AIRBUS      LOGISTICS

Global - Airbus parent company EADS said second quarter profit rose 76% despite costs linked to delays of its A400M military transporter.

Second quarter net profit rose to 208 million euros (S$426 million) while operating profit was up 69% to 656 million euros.

For the six months to June, EADS said operating profit slipped 23% to 888 million euros, because of a charge of 191 million euros taken to cover delays on the A400M project.

Total provisions for the aircraft have been valued at 2.3 billion euros. 'Substantial (further) charges could be taken against results in coming (quarters) depending on how the (A400M) programme advances and the outcome of negotiations' on its future with the project partners, EADS said in a statement.

EADS said it will be focused on protecting cash, managing the order book and deliveries and ensuring that EADS is competitively positioned in its market segments.

The company said its bottom-up analysis of the order book still shows overbooking for the coming years, but may be challenged by the deterioration of the macro-economic and traffic indicators. "There is no clear sign of stabilisation since traffic and yield deterioration as well as funding conditions are challenging airlines' financials," EADS said.

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