February 7, 2018 / 5:03 PM / 6 months ago

BRIEF-Airbus says losses from A400M programme may widen in FY results​

Feb 7 (Reuters) - Airbus Group:

* ‍AIRBUS, EUROPEAN DEFENCE AGENCY OCCAR AND CUSTOMER NATIONS HAVE AGREED TO WORK ON A NUMBER OF CONTRACTUAL ELEMENTS INCLUDING A REVAMPED DELIVERY PLAN AS WELL AS A ROADMAP FOR DEVELOPMENT AND COMPLETION OF MILITARY CAPABILITIES FOR A400M​

* ‍THIS DECLARATION OF INTENT PROVIDES A NEW BASELINE ON WHICH TO EVALUATE A400M CONTRACT​

* ‍AN INCREASE TO LOSS MAKING CONTRACT PROVISION ON PROGRAMME, WHICH MAY BE MATERIAL, IS UNDER ASSESSMENT FOR FULL YEAR 2017 RESULTS WHICH WILL BE DISCLOSED ON 15 FEBRUARY 2018​

* CEO SAYS - ‍THIS AGREEMENT WITH OUR CUSTOMERS IS AN IMPORTANT STEP TO FURTHER MITIGATE RISKS REMAINING ON A400M PROGRAMME​

* CEO SAYS A400M HAS SUFFERED UNDER A FLAWED CONTRACTUAL SET-UP AND INSUFFICIENT BUDGET WHICH RESULTED IN SIGNIFICANT LOSSES FOR AIRBUS AS PRIME CONTRACTOR​ Source text for Eikon: Further company coverage:

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