NEWS

Airbus takes 290M euro charge for military transport crash

Friday, Jul 31, 2015

Plane maker Airbus Group SE said Friday its net profit rose 5 percent in the second quarter to 732 million euros ($805 million) despite a one-time charge stemming from the crash of one of its military transport planes in Spain.

Profits were dented by a 290 million euro charge related to the May 9 crash of an A400M transport plane that killed four crew members. The crash stopped some flight test activities for weeks and led to production bottlenecks.

The company, based in Toulouse, France, said it was working with customers to agree on a new schedule for deliveries. The A400M program has run years behind schedule and cost billions more than expected.

Airbus CEO Tom Enders said the company was on track to achieve its earnings forecast for the year amid healthy demand for commercial aircraft. He said the company was focusing on stepping up production of the A400M and its A350 wide-body passenger jet.

Revenues rose 16 percent in the April-June quarter to 16.81 billion euros, boosted by the stronger U.S. dollar.

Airbus shares rose 3.8 percent to 64.80 euros in morning trading in Europe.

 

news.yahoo.com

Other News