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EADS cuts 2006 profit forecast

EADS cuts 2006 profit forecast
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Embattled EADS has cut its forecast for full-year profit and the aerospace group is warning that delays to its Airbus A380 superjumbo could hit this year’s earnings further. However there was good news in terms of sales and numbers of aircraft deliveries this year. Operating profit in the first half of the year was 1.6 billion euros, up by 6%; sales rose by a better-than-expected 18% to 19 billion euros and it should deliver 430 planes this year.

The new French co-chief executive Louis Gallois and his German counterpart Tom Enders said in a statement that they wanted to “overcome the immense challenge before us.”

In that regard they mentioned the A350 which is having to be redesigned with a near doubling of development costs exchange rates from the US dollar and the A380. The managers also pledged to “rebuild the market’s confidence in EADS” which has seen it share price plunge by a quarter because of the A380 delivery delays.