Airbus profits rise but more A400M problems loom
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.
But Airbus highlighted a "negative cost and risk evolution" for its delayed A400M transport aircraft.
The programme hit problems in 2010 and received a bailout of €3.5bn.
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.
Airbus said it would account for any future impact in its full-year results to be published early next year.
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."
However, adverse exchange rates had impacted on profits in the last three months.