Airbus parent EADS posted a third-quarter net loss and a sharp fall in core profits today amid a drop in jet deliveries at its plane-making unit and persistent weakness in its space business.
But Europe's largest aerospace firm confirmed its delivery and profit targets for the full year, promising a record fourth quarter from Airbus that should vault the Toulouse-based firm ahead of arch-rival Boeing in annual jet sales for the first time.
EADS recorded a net loss of €58 million in the quarter, down from a loss of €68 million in the year-ago period, and a 19 per cent drop in earnings before interest and taxes (EBIT) to €192 million.
Airbus, which accounts for almost all of EADS profits, delivered 50 jets in the third quarter of 2003 compared with 59 in the year-ago period as SARS-stricken Asian airlines pushed back delivery dates.
That pushed core earnings at the plane maker down 60 per cent to €80 million in the quarter.
In the fourth quarter, Airbus deliveries and profits are expected to bounce back sharply, enabling the company to meet its delivery target of 300 jets for 2003 and best Boeing, which is forecasting 280.
Airbus, which is in the process of developing a 555-seat superjumbo jet called the A380, is 80-per cent owned by EADS, with the rest held by Britain's BAE Systems.
Research and development costs for the A380, which is scheduled to enter service with airlines in 2006, climbed €35 million year-on-year to €228 million in the quarter.