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EADS profit hit by A380 problems


EADS profit hit by A380 problems


The delays to the Airbus A380 superjumbo and costs for restructuring mean aerospace group EADS suffered a first-quarter net loss of ten million euros. In the same period last year the company made 522 million.

EADS said it expects a “substantial’‘ loss for its planemaking division for the whole year. Airbus posted an operating loss of 69 million euros in the first three months of this year compared with a 684 million Euro profit last year. It received 51 aircraft order in the quarter, down from 70 in that period in 2006.

Releasing the figures, EADS said that Airbus faces a challenging time. The challenges include the declining value of the dollar against the Euro. Many Airbus expenses are in euros while aircraft sales are priced in dollars.

Another problem is union opposition to the restructuring plan, which includes 10,000 job cuts and the sale of all or part of six European factories. French plants have been hit by a series of unofficial stoppages since the restructuring was announced.

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