EADS Q3 profit stalls on super jumbo costs

Associated Press

PARIS (AP) — The cost of fixing problems on some A380 super jumbos weighed on third-quarter profits at Airbus parent company EADS NV.

Net profit at the European aircraft giant fell 1 percent to €309 million ($394 million) in the July to September period, down from €312 million a year earlier.

EADS said Thursday it has spent €200 million of an expected €260 million total on the A380 repairs, which involve small fractures found near the rivets used to join a metal cover to the aircraft wings' ribs.

Sales rose 15 percent in the quarter to €12.3 billion, and the company says it is on track to exceed its target of 10 percent sales growth for the full year.

Airbus' new A350, intended to challenge Boeing's 787 "Dreamliner," was delayed by several months until the second half of 2014, the company said in July. EADS says that remains its target, but warned that the "program remains challenging."

The reason for the A350 delay is for putting in place an automated drilling process for the plane's wings. Airbus has already taken €124 million charge as a result, and warned that further delays would lead to greater charges.

Airbus said it is on track to deliver 580 commercial aircraft this year including 30 A380s.

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