European aerospace group EADS lost euro 909 million last year but said today underlying profits were on the increase thanks to a stellar performance by plane-maker Airbus.
The group was formed last July from the merger of France, Germany and Spain's top aerospace firms to give it 80 per cent ownership of Airbus in partnership with 20 per cent owner BAe Systems.
It also said it was raising improved profit margin targets.
As expected core profits were driven by Airbus, which registered earnings of euro 1.41 billion - slightly more than the group's total operating profit.
Thanks in large part to the performance of Airbus EADS raised its operating margin target for 2004 and predicted strong growth this year.
That loss was largely due to a 1.44 billion euro drag from currency hedging accounting.
The group inherited the macro hedging policy of French aerospace firm Aerospatiale Matra and must write down the value of that hedge at the end of each accounting period.