EADS back in profit despite gloom

The production of the A400M transporter has been marred by delays

European aerospace group EADS has said it returned to profit in the third quarter thanks to cost-cutting and fewer delays in aircraft programmes.

It posted a 679m-euro profit ($850m; £574m), as against a 776m-euro loss for July to September 2007.

Airbus-parent EADS said reaching annual targets remained challenging because of setbacks in the production of its A400M military transporter.

In the first nine months of 2008, EADS received 737 new orders at Airbus.

Its revenues increased by 7%, to 29.4bn euros.

The company says its orders book is large enough to cover deliveries for several years, which puts it in a a position of strength during a time of economic uncertainty.

"With weaker anticipated air traffic and more difficult refinancing, the commercial aircraft market is expected to slow down, with risk of deferrals and even cancellations," said the EADS statement.

However, EADS hopes to attract orders for at least another 120 aircraft before the end of 2008.