Airbus profits down; gearbox troubles in military plane

PARIS (AP) - Airbus Group says it's facing a "challenging year" after profit sank in the first quarter and troubles surfaced with a gearbox on the A400M military cargo jet, yet is maintaining forecast for growth over 2016.

The parent of European plane-maker Airbus on Thursday reported 399 million euros ($453 million) in profits for the quarter, down 50 percent from 792 million euros in the same period last year, when profits were boosted by a big asset sale.

The company said problems with the engine propeller gearbox on the A400M could have a "significant" financial impact. Airbus is evaluating plans for planes in production and already in service.

Airbus also said it informed British authorities of "mistakes and omissions" in applications for credit export financing for customers discovered during internal auditing. It didn't elaborate.