Airbus SE has begun a belt-tightening exercise at its military and space division to ensure it will meet full-year targets, the European plane maker said Thursday.
Airbus said in a statement that it was in a "traditional year-end race" to meet goals. "It is key to remind our troops at this important time of a business year of the importance of meeting our cash objectives," the Toulouse, France-based company said.
Continue Reading Below
Management of the unit has told staff in a memo that some expenses would be frozen amid concern about cash shortfalls. The memo was first reported by Reuters.
Airbus called the effort "standard procedure."
The plane maker has in the past been at risk of missing full-year targets with only weeks to go. Last year it had to deliver a record number of commercial planes to meet its full-year objectives.
The defense unit has had difficulties with one of its flagship programs, the A400M military transport plane. The company has struggled to bring down costs to build the plane and to introduce enhanced technical configuration required by militaries. Airbus is in talks with European buyers of the planes to renegotiate contract terms.
Airbus shares were 1.28% lower in mid-morning Paris trading.
Write to Robert Wall at firstname.lastname@example.org
(END) Dow Jones Newswires
October 05, 2017 06:12 ET (10:12 GMT)