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EAD Profits Drop

ImageEAD, the parent of Airbus, registered a 70% dive in operating profits during the first quarter, following a new charge for its postponed A400 military plane.  They also cut their forecast for civil plane order, which caused their share price to slide.

EAD results reflect the challenges faced by aerospace firms because airlines avoid expanding their fleets while funds are scarce.  Backstop accounting measures in place at EAD add to the difficulties while the A400m’s future is uncertain.
 

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