The European Aeronautic Defence & Space Co. (EADSY) reported strong earnings and guidance for its most recent quarter today, but it said that there would be delays to its A350, a new passenger plane expected to compete with Boeing’s (BA) 787 Dreamliner. The market looked on the bright side and shares rose 7.8% in midday trading.
EADS posted 322 million euros worth of EBIT, versus expectations from analysts polled by Dow Jones Newswires for 141 million Euros. The company also said that it expects to post 1.45 billion Euros of EBIT for 2011, above its previous projection of about 1.3 billion Euros.
The A350 XWB jet was initially expected to enter service in late 2013, but the timetable has been pushed back to 2014, the company said. EADS will also take a 200 million Euro charge because of the delay. Boeing had numerous delays to its 787, before delivering the first jet in September.
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