Airbus takes €1.3bn charge on A400M troop carrier
Airbus has taken a €1.3bn (£1.2bn) charge on its troubled A400M military transport plane, bringing total charges on the project to more than €8bn.
The A400M has had setbacks over the years, most seriously a crash during a test flight in Spain in 2015 which led to the deaths of the four crew members.
The aerospace group reported better-than-expected 2017 profits of €4.3bn, against €3.9bn in 2016.
Revenues were “stable” at €66.8bn, up from €66.6bn.
In its statement, Airbus said higher aircraft deliveries had been “offset by a reduction in revenues of around €2bn from the perimeter changes”.
Last week, Airbus reached a provisional agreement with seven European NATO buyer countries over further delays in deliveries for the A400M.
Airbus chief executive Tom Enders said: “On A400M, we made progress on the industrial and capabilities front and agreed a re-baselining with government customers which will significantly reduce the remaining programme risks. This is reflected in a substantial one-off charge.”
Shares in the company rose by about 8% after the results were published.
Airbus said it expected to deliver about 800 commercial aircraft in 2018 if engine manufacturers met their commitments.
If it does hit those delivery targets, it said it would see profits increase by about 20% this year.
Last month the Emirates airline announced an order for up to 36 Airbus A380s.
The $16bn (£11.5bn) deal was effectively a reprieve for the A380 after Airbus threatened to stop making the jet if it could strike a deal with Emirates.
In its results statement Airbus said Emirates Airline’s latest order provided “increased visibility on the A380 programme for the years to come”.
Source by BBC