Airbus Group today posted lower than expected third-quarter profits led by a faltering performance in its core commercial jet division and continued weakness in the commercial helicopter market.
But the company broadly maintained its 2016 outlook.
Europe's largest aerospace group, which includes the world's second-largest jetmaker behind Boeing, said quarterly operating profit before one-off items fell 21% to €731m.
Third quarter revenues fell 1% to €13.95 billion.
The commercial jets unit saw a 26% slump in third-quarter profits despite 4% higher revenue, with the planemaker highlighting difficulties in the supply chain for its A350 and A320neo jets. Helicopter profits fell 29%.
The results were below average forecasts, though the company had earlier sought to dampen market expectations as it ploughs through a tricky model transition, according to market sources.
Analysts had on average forecast quarterly core operating earnings down 19.3% at €743m on revenue up 1.9%, according to a Reuters survey.
But Finance Director Harald Wilhelm dismissed concerns over the aerospace cycle, saying more airlines were trying to get planes earlier than those that wanted to cancel or defer them.
"The commercial situation continues to be robust," he told reporters.
Airbus has struggled to switch to a new model of A320 due to delayed deliveries of engines from Pratt & Whitney.
It said it had received "firm commitments" from engine makers that they would meet the A320neo schedule, but the mix of higher-priced new models in deliveries was weaker than expected.
Deliveries of A350 long-haul jets have also been held up by shortages of cabin equipment.
Airbus signalled greater confidence about bringing down A350 costs and said it was working towards meeting its target of more than 50 A350 deliveries in 2016, having delivered 29 this year including three this month.
Meanwhile, Boeing today bettered profit expectations in the third quarter despite declining revenue and increased up its sales forecast for the full year.
