Losses at Airbus slashed operating profit at Franco-German parent EADS by 86 per cent to €399 million in 2006, but the fall was cushioned by profits in defence, the group said.
The results included a €572 million loss at Airbus due to aircraft production and development problems and a weak dollar, as well as a €352 million provision on the A400M military plane "to deal with risk and technical challenges".
Analysts had forecast an EADS operating loss after special items of €27 million.
EADS said its operating income would remain roughly stable in 2007, including "another substantial loss" for Airbus, and free cash flow would be negative. EADS reported net profit down 94 per cent at €99 million. It withheld an immediate announcement on the dividend, saying its board would recommend a level at its next meeting.