Airbus takes new €1.3bn hit on A400M troop carrier

From BBC - February 15, 2018

Airbus has taken a 1.3bn (1.2bn) charge on its troubled A400M military transport plane, bringing total charges on the project to more than 8bn.

The A400M has had setbacks over the years, most seriously a crash during a test flight in Spain in 2015 which led to the deaths of the four crew members.

The aerospace group reported better-than-expected 2017 profits of 4.3bn, against 3.9bn in 2016.

Shares in the company rose by about 8% after the results were published.

Revenues were "stable" at 66.8bn, up from 66.6bn.

In its statement, Airbus said higher aircraft deliveries had been "offset by a reduction in revenues of around 2bn from the perimeter changes".

Last week, Airbus reached a provisional agreement with seven European NATO buyer countries over further delays in deliveries for the A400M.

Airbus chief executive Tom Ender said on a conference: "We have been in permanent crisis management for the last two or three years."

He said in the results statement: "On A400M, we made progress on the industrial and capabilities front and agreed a re-baselining with government customers which will significantly reduce the remaining programme risks. This is reflected in a substantial one-off charge."

Airbus said it expected to deliver about 800 commercial aircraft in 2018 if engine manufacturers met their commitments.

Analysis: Theo Leggett, business reporter


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