A380 problems mean deliveries are almost two years behind schedule

Operating profits for the six months to June sank to 367m euros ($504m; �246m), 78% down from the same period last year.

Meanwhile sales fell 4% to 9.5bn euros despite a late surge in orders.

Restructuring and delays at its Airbus unit led to a 688m euro hit, while 105m euros was put aside to cover delays at its Eurocopter unit

Setbacks

Wiring problems have left the group's A380 superjumbo two years behind schedule, while redesigns have held back deliveries of its A350 model.

Airbus' financial performance still shows the signs of well-known challenges Airbus chiefs Louis Gallois and Tom Enders Check EADS' share price

EADS commercial division Airbus views the A350 as key to its battle with Us rival Boeing to become the world's biggest selling planemaker.

The newly designed A350 XWB - which stands for extra wide body - aims to take on the Boeing 787 Dreamliner in a battle for the medium-sized long-haul jet market

Looking ahead, EADS said the popularity of the new A350 had bolstered its cash position, prompting it to predict that full-year cash flow would now be positive, compared with the 1bn euro shortfall forecast in May.

Airbus bagged a record 425 orders at the Paris Air Show last month, taking its order book to 680 planes for the first six months of the year, and leading to a raft of down payments.

"Airbus' financial performance still shows the signs of well-known challenges, but business is brisk and recent orders highlight how competitive our product range is," co-chief executives Louis Gallois and Tom Enders said in a statement.

Airbus, the commercial airline arm, accounts for about two-thirds of revenue at EADS, which also makes military planes, helicopters, rocket launchers, satellites and missiles.

More woes

Problems at the group's military wing also ate into profits.

While EADS has put aside 150m euros to cover delivery delays on its Eurocopter NH90 military helicopter, it also warned of mounting risks with its A400M military transport craft.

The latest results mark the last from the firm under its dual Franco-German leadership structure.

EADS' complex structure has been blamed for many of its recent problems.

As a result, earlier this month it was decided that French joint chief executive Mr Gallois would take sole charge at EADS while his German co-head Mr Enders would get the top job at Airbus.