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EADS profit plunges over costly Airbus

EUROPE’S largest Aerospace group EADS's first-quarter profit plunged by almost two-thirds after persistent cost worries over its A380 superjumbo, it said.

The parent company of Airbus posted a 64 per cent drop in operating profit to €83m (£71.3m), missing average market expectations.

The figures included a slim profit of €7m profit for the Airbus commercial planemaking unit, down from €89m a year earlier.

It took a €400m knock from deteriorating currency rates.

"In addition, the A380 continues to weigh significantly on underlying performance," EADS said in a statement.

Airbus has said it is struggling to contain costs on the world's largest airliner.

EADS net profit fell 39 per cent to €103m. Sales rose six per cent to €8.95bn in line with expectations.

Chief Executive Louis Gallois said recent financial market turbulence signalled "the crisis is not fully behind us."