European aerospace and defence group EADS said its Airbus division probably had an operating loss last year following production problems and delays to its A380 superjumbo programme.
Delays in the A380 have led to 1 billion in charges
The unit would be hit by charges relating to settlements with customers, the impairment of assets and its Power8 cost-cutting programme, EADS said in a statement.
There could also be additional charges relating to the A380 that were "not originally envisaged", the company said.
The probable 2006 loss before interest, tax, goodwill impairment and exceptional items (EBIT loss) at Airbus would be "roughly" balanced out by positive EBIT contributions from EADS's non-Airbus divisions, it said.
EADS posted a third-quarter operating loss in November after delays to the A380 led to €1 billion ($1.30 billion) in charges. The company had scrapped its full-year earnings target in the previous month.
EADS had said the crisis at Airbus would lead to a profit shortfall of €4.8 billion in coming years.
But EADS repeated in November that it would achieve 2006 revenues of well above €37 billion based on 430 Airbus aircraft deliveries in 2006 and strong contributions from its helicopters, defence and space businesses.
Airbus is holding a press conference later today.