UPDATE 1-Airbus takes 1.3 bln euros charge on A400M military plane

From Reuters - February 14, 2018

PARIS (Reuters) - Airbus on Thursday took a new 1.3 billion euro ($1.6 billion) hit on its A400M military transport plane, liftingcharges on Europes troubled defense project above 8 billion euros and clouding higher-than-expected underlying profits.

Europes largest aerospace group posted adjusted 2017 operating profit of 4.253 billion euros on revenues of 66.767 billion euros and predicted a 20 percent rise in the widely watched core profit item.

Analysts were on average expecting adjusted 2017 operating profits of 3.996 billion euros and revenues of 67.343 billion, according to a poll conducted for Reuters.

The A400M charge comes after Airbus last week reached a provisional agreement with seven European NATO buyer nations over further delays in deliveries for the new troop carrier..

Airbus Chief Executive Tom Enders said in a results statement that the deal would significantly reduce the remaining programme risks.

Airbus announced an 11 percent dividend hike.

It also reaffirmed a target of around 800 jetliner deliveries for 2018, subject to the performance of its engine manufacturers.


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