Airbus parent EADS warned on Monday of a bigger-than-expected charge of up to 1.4 billion euros ($2.03 billion) from delay of its A400M military plane, forcing it to shelve its 2007 operating profit forecast.
Delay in EADS's biggest military program follows costly setbacks in its largest airliner, the A380 superjumbo, which rocked its earnings last year.
EADS shares were down 3.67 percent at 22.05 euros as of 0950 GMT, making the stock the biggest faller on France's benchmark CAC-40 index.
When the A400M's delay was announced last month, most brokerage analysts said they expected a charge of about 1 billion euros.
On Monday, Europe's biggest aerospace firm put the figure at 1.2 billion to 1.4 billion euros.
"This figure does not include new potential issues which could arise from flight testing, engine development and military systems. EADS remains in close contacts with its suppliers on these matters," it said.
"It was sort of expected but it's more bad news for them," said a Paris-based trader, who declined to be named. |
