EADS Expects Further Costs for A400M Delays
European aerospace and defence group EADS announced on Monday its estimate for charges related to the revised delivery schedule for its A400M plane.
EADS, which has also been hit by delays to the A380 superjumbo, said it believed it would now need to expense between 1.2 billion euros ($1.74 billion) and 1.4 billion euros, with more than 1 billion euros of this for its planemaker arm Airbus.
"This estimate is the best that can be established at this point of the programme development, and is consistent with the delays of 6 months, with a risk of a further slippage of up to a half year, that were announced on 17 October 2007," EADS said in a statement.
"This figure does not include new potential issues which could arise fromflight testing, engine development and military systems. EADS remains in close contacts with its suppliers on these matters," it added.
EADS also said it would discontinue its EBIT (earnings before interest and tax) guidance for 2007. This would be replaced by an updated guidance on 8 November, along with the disclosure of third-quarter earnings.