Airbus Q3 operating profit down 4 percent

PARIS, Oct 31 (Reuters) – Europe’s Airbus said on Tuesday third-quarter earnings fell by a sightly narrower-than-expected four percent on lower aircraft deliveries and reaffirmed its forecasts as the fallout from an internal compliance review widened to the United States.

The world’s second largest planemaker after Boeing posted quarterly core operating earnings of 697 million euros ($811 million), while revenues rose 2 percent to 14.244 billion euros.

Markets had expected a weak quarter due to delays in commercial aircraft and a build-up of inventory.

Analysts on average expected third-quarter adjusted operating profit down 5.6 percent at 690 million euros on revenues up 1.8 percent at 14.2 billion, according to a Reuters survey.

Airbus said it was too early to predict the size of any fines resulting from ongoing corruption problems in the UK and France concerning the use of commissions in airplane sales, which have also triggered a sweeping internal investigation.

But it said it had now discovered inaccuracies in past declarations to the U.S. State Department under part 130 of the U.S. International Traffic in Arms Regulations (ITAR). The legislation concerns political contributions, fees and commissions.

($1 = 0.8595 euros) (Reporting by Tim Hepher and Cyril Altmeyer; Editing by Sudip Kar-Gupta)

Sorry we are not currently accepting comments on this article.