Airbus Group hit by 1.4 billion euros in charges in Q2

By: | Published: July 27, 2016 11:22 AM

Airbus Group took over 1.4 billion euros ($1.54 billion) in fresh charges for its troubled A400M military airlifter and delayed A350 jetliner, but reaffirmed its targets as it posted lower quarterly earnings on Wednesday.

Delays in deliveries of another keenly awaited jet, the revamped A320neo jetliner, also weighed on Europe's largest aerospace group, whose core profits fell 4 percent in the second quarter.(Reuters)Delays in deliveries of another keenly awaited jet, the revamped A320neo jetliner, also weighed on Europe’s largest aerospace group, whose core profits fell 4 percent in the second quarter.(Reuters)

Airbus Group took over 1.4 billion euros ($1.54 billion) in fresh charges for its troubled A400M military airlifter and delayed A350 jetliner, but reaffirmed its targets as it posted lower quarterly earnings on Wednesday.

Delays in deliveries of another keenly awaited jet, the revamped A320neo jetliner, also weighed on Europe’s largest aerospace group, whose core profits fell 4 percent in the second quarter.

Airbus Group posted 1.026 billion euros of charges for the A400M following gearbox problems and fuselage cracks and 385 million for the A350, whose deliveries have been held up by shortages of cabin equipment, triggering new penalty payments.

Core operating earnings before one-off items fell 4 percent to 1.183 billion euros in the second quarter as revenues slipped 1 percent to 16.572 billion euros. Analysts had on average predicted core earnings of 1.012 billion euros on revenues of 16.299 billion euros, according to a Reuters poll.

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