Military plane cost hits Airbus profits

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Aircraft manufacturer Airbus reported a drop in 2016 profits, mainly because of a charge on the A400M military plane.

Its net income fell by 63% to 995m euros (£838m), although revenue went up 3% to 66.5bn euros (£56bn).

The results are the first since Airbus started simplifying the company by mixing its European business with the parent company, previously called EADS.

Chief executive Tom Enders said: "We've delivered on the commitments we gave a year ago."

He added: "We achieved our guidance and objectives, with one exception, the A400M, where we had to take another significant charge totalling 2.2bn euros (£1.85bn) in 2016.

"De-risking the programme and strengthening programme execution are our top priorities for this aircraft in 2017," he said.

BBC

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