EADS will take on charges of between €1.2 billion and €1.4 billion related to delays that have hit its A400M European military aircraft, with more than €1 billion incurred by aircraft unit Airbus.
Last month, Airbus confirmed it had pushed back deliveries for the A400M transporter by up to a year. The A400M is a €20 billion project to build a transport plane for seven Nato countries.
It is considered to be Europe's biggest military project and deliveries had originally been planned for October 2009.
The European aerospace and defence group, which has also had delays with the A380 superjumbo and is the subject of an investigation into alleged insider trading, added today it had scrapped its 2007 guidance for earnings before interest and tax.
It said it would give a trading update on November 8th when it publishes third-quarter earnings.
EADS shares were down 4.2 per cent at €21.94 in early morning trade, their lowest level in about a month.