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Airbus profit down 66%

Staff Writer |
Airbus said that full-year net profit plunged 66% with higher airliner deliveries offset by cost growth on a key military aircraft.

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Airbus said it made 995 million euros ($1.05 billion) in net profit last year compared with EUR2.70 billion the year before.

Earnings were hit in the fourth quarter by a EUR1.2 billion charge on the beleaguered A400M military transport plane that already incurred EUR1 billion in unanticipated costs earlier in the year.

Airbus has struggled with developing and building the large turbo-prop cargo hauling plane and incurred repeated technical setbacks in getting them to customers on time.

Airbus CEO Tom Enders last year promised to deliver at least 20 A400Ms in the year. Airbus shipped 17.

The company's more closely watched earnings before interest and taxes stripping out certain one-time items fell 3.6% to EUR3.96 billion, even though sales rose 3% to EUR66.58 billion.

The Toulouse, France-based company reported full-year free cash-flow before mergers and acquisitions of EUR1.41 billion.

The plane maker generated more than EUR6 billion in free cash in the last three months of last year during which it handed over 226 airliners out of 688 total deliveries in 2016.

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