This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-30049678

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Airbus sees profits and revenues rise Airbus profits rise but more A400M problems loom
(about 2 hours later)
Airbus has reported a rise in profits for the first nine months of the year, but warned of potential problems from its A400M military plane. Aerospace group Airbus has posted a rise in profits for the first nine months of the year, but warned of more problems for its A400M military plane.
Underlying earnings rose 12% to €2.59bn ($3.2bn; £2.1bn) for the nine-month period, with revenues up 4% to €40.5bn. Net income rose 16% to €1.399bn.Underlying earnings rose 12% to €2.59bn ($3.2bn; £2.1bn) for the nine-month period, with revenues up 4% to €40.5bn. Net income rose 16% to €1.399bn.
Airbus said demand for the company's products remained "strong". But Airbus highlighted a "negative cost and risk evolution" for its delayed A400M transport aircraft.
However, the company also warned of a possible impact from delays to its A400M programme. The programme hit problems in 2010 and received a bailout of €3.5bn.
"On A400M, negative cost and risk evolution mostly driven by military functionalities challenges, delays in aircraft acceptance and industrial ramp-up together with associated mitigation actions are under assessment and will be finalised for the 2014 full year accounts," the company said. Built at a cost of €20bn with orders from several European countries, the A400M was a fixed-priced contract that hit production problems and cost-overruns.
The A400M programme ran into problems in 2010 and received a bailout of €3.5bn. Airbus said it would account for any future impact in its full-year results to be published early next year.
Airbus said it had an order book worth €765.4bn on 30 September, compared with €680.6bn at the end of 2013. The company's finance director did not rule out Airbus taking a one-off accounting charge against future problems.
Harald Wilhelm told journalists: "Given our past history on it (the A400M), the objective remains to avoid any incremental charge, but we are on the way to assessing it. If you ask me whether I can exclude it, I cannot say that this is the case, so it's work in progress."
Outside of the A400M problems, Airbus, whose wing-making operations are in the UK, said that the company's products remained "strong".
The order book was worth €765.4bn as of 30 September, compared with €680.6bn at the end of 2013.
Airbus Group chief executive Tom Enders said: "An improved operational performance drove revenues and profitability higher over the first nine months of 2014."Airbus Group chief executive Tom Enders said: "An improved operational performance drove revenues and profitability higher over the first nine months of 2014."
However, he added that the company still faced a number of challenges, including "the ramp-up of the A350 and A400M programmes, which continue to require strong management focus". However, adverse exchange rates had impacted on profits in the last three months.