Wednesday, 13 July 2016

Airbus Sees A400M, and Possible A350, Charge With H1 Results



 Airbus (AIR.PA) is likely to take a fresh charge with its first-half results for the latest problems involving its A400M military transporter, Finance Director Harald Wilhelm said on Wednesday.
Problems that the company partially blames on the gearbox of the aircraft's large turboprop engines have disrupted deliveries of the already delayed military plane and driven up costs.

Wilhelm, speaking to analysts at the Farnborough Airshow, said the first-half charge would not cover all the issues currently being audited and further writedowns could be taken beyond 2016.
He gave no indication of the size of the potential charge. Airbus has already taken billions of euros of charges related to the A400M.
Wilhelm said there was also a risk of charges related to loss-making contracts on the A350 jetliner, but that these would not affect the aircraft's overall breakeven target.
He said the level of commercial order deferrals and cancellations was "very low" and the company's orders supported its plans to raise production of single-aisle jets.
Credit:Reuters

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