Company - - Feb 15,2018
The European airplane designer, Airbus, has been hit by a €1.3bn (£1.2bn) charge associated to its troubled A400M military transport plane.
On Thursday, Airbus was hit by a new 1.3 billion euro ($1.6 billion) charge on its A400M military transport plane. This fresh charge has lifted Europe's troubled defense project more than 8 billion euros, and has been shadowing the already expected underlying profits.
Over the years, the A400M has faced setbacks, most seriously in a crash which happened while performing a test flight in 2015. This incident led to the death of four crew members.
Europe's largest aerospace group displayed adjusted 2017 operating profit valuing 4.253 billion euros based on revenues of 66.767 billion euros. It further predicted a 20 percent surge in the broadly watched core profit product.
The A400M charge has been issued after Airbus last week fulfilled a provisional agreement including seven European NATO buyer nations concerned with further delays in the delivery of its new troop carrier.
The popular aircraft maker also announced an 11 percent surplus hike; the company has restated a target of close to 800 jetliner deliveries set in 2018.
Tom Ender, Airbus chief executive said in a conference "We have been in permanent crisis management for the last two or three years." He further added, the company has made progress on its A400M after agreeing for a re-baselining concerning government customers, helping in reducing risk related to this programme.
The A400M was seen as the star of Airbus' military fleet; however, the programme has been gritty due to endless delays and technical problems. Enders has described it as a 'flawed contractual setup".