Airbus parent EADS yesterday reported a 527 million ($663.9 million) second-quarter net profit, down 9% from 582 million in the year-ago quarter, on revenues of 9.9 billion, a 10% rise over last year.It conceded that "operational issues" leading to A380 delivery delays, the A350 redesign and the resignations of top executives at both EADS and Airbus made the second quarter a difficult one.

It also lowered its profit forecast for the full year, saying it now estimates 2006 EBIT of 3.2 billion. Previously, it said its EBIT could be as high as 3.4 billion. "Together we will address the huge challenges ahead," co-CEOs Tom Enders and Luis Gallois said in a statement. "We will rebuild the market's confidence in EADS."

Airbus reported second-quarter EBIT before exceptional items of 810 million, a 1% dip from EBIT of 816 million in the year-ago quarter. Revenues rose 8% to 6.79 billion from 6.27 billion last year. In the first half of 2006, Airbus delivered 219 aircraft compared to 189 in the same period last year and received 117 gross orders, not including the 182 additional orders announced at the Farnborough Airshow.

"The current operational priority for Airbus is the stabilization of the A380 program," EADS said. "Detailed reviews of the A380 program are currently being implemented by EADS and Airbus management."

For the first half, EADS net income was 1.63 billion, up 5% from net income of 992 million in the first six months of 2005, on an 18% jump in revenues to 18.98 billion. Airbus's first-half revenues climbed 17% to 13.15 billion.