PARIS (Reuters) – Europe’s Airbus reported sharply lower second-quarter profits on Tuesday as the cost of investing in higher jetliner production, coupled with largely pre-announced charges in its Space Systems business, outweighed higher revenue.
The world’s largest planemaker said adjusted operating profit fell by more than half to 813 million euros ($878.5 million) in the quarter as revenue edged up to 15.995 billion euros.
It also took a charge of 989 million euros on forward losses in its space business, slightly higher than the estimate of about 900 million euros given with a profit warning last month.
Analysts were on average expecting second-quarter adjusted operating income of 699 million euros on revenue of 15.822 billion, according to a survey compiled by the company.
($1 = 0.9254 euros)
(Reporting by Tim Hepher; Edited by Barbara Lewis and David Goodman)
