Operating profit, as measured by earnings before interest and tax (EBIT), is seen rising to 2.4 billion euros in 2005, the European aerospace giant said.

Full-year sales in 2004 were expected at around 32 billion euros, based on a euro-dollar rate of 1.24 dollars, boosted by defence sales that climbed to around 8.0 billion from 7.1 billion in 2003.

The military order book now stands at close to 50 billion euros, it said, adding that EADS is on track for further improvement across all divisions.

EADS expects an EBIT margin of more than 7.0 percent in 2004, up from 5.1 percent and "on the right path" towards the group's goal of 10 percent.

The year-end net cash position is expected to be "significantly in excess of" the year-end 2003 level of 3.1 billion euros.

Cash generation was better than expected in the Defence and Security Systems, Airbus and Space divisions, it said.

EADS owns 80 percent of the aircraft maker Airbus, while BAE Systems of Britain holds 20 percent.

All rights reserved. � 2005 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.