EADS says net profit rose 76 percent in 2Q to euro208M, below analyst expectations

EADS net profit up 76 percent in 2Q

PARIS — Airbus parent company EADS NV said Tuesday that second-quarter net profit rose 76 percent as the European planemaker delivered more aircraft and charges for its delayed A400M military transport eased.

Shares rose as European Aeronautics Defense and Space Co. said Airbus still plans to deliver as many planes as last year, even as the recession hurts customer airlines.

Net profit was €208 million ($297 million) in the April to June period, up from €118 million reported a year earlier but below analysts’ forecasts.

Shares were up 5.3 percent at €13.38 in Paris morning trade.

EADS warned that it may take “substantial negative” hits to future profits from the delayed A400M military transport program, which it is renegotiating with governments.

EADS missed a March 31 contractual deadline for the first flight, and it could have to repay as much as €5.7 billion ($8 billion) to governments if the project were canceled.

At the end of June, Airbus had delivered 254 aircraft this year, compared with 245 in the first half of 2008.

In a statement, EADS said it expects Airbus to win 300 new gross orders this year while keeping aircraft deliveries stable at the 2008 level, including 14 A380 super jumbos.

This despite the woes of the airline industry which the International Air Transport Association says could lose $9 billion globally in 2009.

EADS said its second half earnings before interest, tax, goodwill and exceptional items will be positive but will fall compared to the first half level of €888 million, due to higher research costs and foreign exchange rate impact.

The company said its net cash position “remains solid” at €8.1 billion. At the end of the previous quarter, EADS had cash reserves of €8.7 billion, compared with €9.2 billion at the end of last year.