EADS, the parent company of Airbus, said a major drop in second quarter profit was due to delivery delays for its A380 superjumbo, the redesign of the new A350, reorganisation costs and the strength of the euro. However EADS believes that thanks to orders for the A350 it will have a positive full-year cash flow. In May it had forecast a shortfall of one billion euros.
For the second quarter, EADS sales were down 4% from the same period last year at 9.5 billion euros. Net income was 81 million euros, 85% lower. In the period Airbus delivered 116 planes, 1.7% fewer than last year.
For the year ahead, EADS’ NH90 military helicopter could be another problem. The group has put aside 105 million euros to cover possible delivery delays and it said the A400M military transport aircraft may not be ready as early as it has been promised to the seven NATO countries that going to buy it.
This is the last set of earnings under the company’s cumbersome dual nationality leadership system. French joint chief executive Louis Gallois is taking sole charge at EADS and his German co-head Thomas Enders will run Airbus.