Aerospace & Defense

Leonardo says it did not use MPS parts for Airbus programmes

1 minute read

A logo of defence group Leonardo is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse

MILAN, Oct 15 (Reuters) - Italy's Leonardo (LDOF.MI) said its former sub-contractor Manufacturing Processes Specification (MPS) (LDOF.MI) did not provide it with components for Airbus' (AIR.PA) programmes.

Shares of the Italian state-controlled conglomerate fell more than 7% on Thursday after Boeing (BA.N) said parts supplied by Leonardo sourced from the sub-contractor had been improperly manufactured.

MPS is listed as an Airbus approved supplier in a document available on the planemaker's website.

Leonardo shares were volatile on Friday on the Milan stock exchange. They were rising 1% at 1255 GMT, underperforming Italy's blue-chip index FTSE MIB (.FTMIB), up 0.8%.

(This story was corrected to clarify that Leonardo did not use components supplied by MPS for Airbus programmes)

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Reporting by Maria Pia Quaglia, editing by Giulia Segreti

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