Airbus-owner in a dive after taking restructuring hit

Airbus parent Eads today reported a 47% dive in fourth-quarter profits after taking almost €300 million (£260 million) of charges relating to restructuring and contract renegotiations.

The aerospace giant, which tried unsuccessfully to merge with BAE Systems last year, reported a €325 million profit as its Cassidian defence business took a €198 million hit, in part to reflect restructuring costs. Renegotiating contracts with government customers resulted in a €100 million charge at its Eurocopter helicopter maker.

But despite the decline, Eads posted a 19% jump in full-year profit to €1.23 billion as a strong performance by its Airbus unit helped boost sales by 15% to €56.48 billion. Airbus’ strong showing was highlighted as arch rival Boeing continued to struggle with its 787 Dreamliner.

The Federal Aviation Administration said it is not close to approving test flights for the Dreamliner with a proposed fix for the planes troubled batteries, denying news reports that such tests could start next week.