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EADS profits hit by Airbus upsets


EADS profits hit by Airbus upsets


EADS has revealed that its operating profit for last year plumeted because of the troubles at Airbus despite its defence and space businesses performing better.

Co-chief executive officer Louis Gallois also warned the planemaking side of the business faces another “substantial loss” this year.

Revenues at 39.4 billion euros, were up 15%, but profit before interest and tax was just 400 euros, an 86% fall from 2005.

Lious Gallois wearily recited the details: “2006 was a year of contrasts. On one side, the sunny side, deliveries have been at a record level – 434 airplanes. On the other side, you know perfectly well the problem created by the A380 delays, including the launching of the Power 8 programme.”

EADS deferred making a share dividend announcement. That is politically sensitive. The Power eight restructuring plan includes 10,000 job cuts.

The French government, just weeks away from a Presidential election, has said it does not expect to receive a dividend for its 15% EADS shareholding.

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