Airbus prepares for fewer orders

EADS took a charge of 120m euros on its delayed A400M

European aerospace group EADS, the parent company of Airbus, has cut its forecast for plane orders after reporting a 40% fall in profits.

EADS has seen orders dry up this year as airlines limit their spending amid the economic downturn.

The group now plans to deliver "up to 300" Airbus aircraft in 2009, down from its earlier forecast of 300-400 orders.

Net profit for the January to March quarter fell to 170m euros ($230m; £152m) from 285m euros a year ago.

Airbus delivered a record 483 aircraft in 2008, beating main rival Boeing.

But EADS said it saw 14 cancellations out of the 22 Airbus orders it took in the first quarter of 2009.

Revenue at EADS fell 14% to 8.5bn euros, while revenue at Airbus dropped 21% to 5.9bn euros.

Production problems

Production of its A400M military transporter has been delayed because of problems with its engines.

EADS took a charge of 120m euros for the delayed aircraft, and warned the final tab could be "substantial".

Group chief executive Louis Gallois admitted the programme was "a big concern for us".

The firm said the charge had had an impact on results, as had changing foreign exchange rates.

First-quarter operating profit before these one-off items stood at 400m euros, EADS said.