More cuts mooted after EADS loss

EADS is facing a shares' probe relating to delays with the A380

Airbus parent firm EADS may have to deepen its planned restructuring after steeper than expected third-quarter losses and a warning on 2007 profits.

It said a net loss of 776m euros ($1.14 bn; £541m) - as against a loss of 189m euros in 2006 - was down to delays with its A400M military transport aircraft.

And it said full-year earnings would only "roughly break even".

EADS said it might have to make more savings, as cost-cutting plans were drawn up when the euro was weaker.

Airbus plans to cut 10,000 jobs in four years under its Power8 restructuring plan, which should save 5bn euros.

'Additional measures'

However, in September, Airbus chief operating officer Fabrice Bregier said a further 1bn euros might have to be added to a savings plan which was originally based on a $1.35 euro.

On Wednesday the euro jumped to a new record against the dollar, at beyond $1.47.

And on Thursday, EADS chief executive Louis Gallois said: "The sliding trajectory of the US dollar confirms the necessity to implement and to reinforce Power8 with additional measures.

"There is no way around additional efficiency measures to ensure EADS's long-term competitiveness."

EADS did not say whether the new measures would lead to extra job cuts, but said it had decided with unions on existing cutback plans.

Meanwhile, French lawmakers and Paris' financial market regulator are investigating suspicions of insider trading in EADS shares in June 2006.

The deals are alleged to have taken place just before Airbus's public acknowledgment of problems with the A380 - an announcement that sent shares tumbling 26% at the time.