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EADS profits hit by Airbus upsets

EADS profits hit by Airbus upsets
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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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