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Defence and aerospace company EADS has posted a €446 million (£341 million) loss, blaming delays in developing its military aeroplane A400M and a weak dollar.

European Aeronautic Defence and Space's loss of €446 million (£341 million) for 2007 compared with a net income in 2006 of €99 million (£75 million), giving a loss per share of €0.56 (43p).

EADS chief executive Louis Gallois said: "2007 was a tough year with many high profile challenges to be overcome."

The company's Power8 restructuring programme also affected profits, although the company said some initial savings had been made.

EADS' pre goodwill and exceptionals earnings for 2007 stood at €52 million (£39.76 million) compared to €399 million (£305 million) in 2006. EADS said the drop was mainly due to a group-wide A400M charge (reflecting programme delays of six to 12 months), by Power8 restructuring and A350 XWB charges.

The military aircraft division's earnings before tax, interest and amortisation dropped to a loss of €155 million (£118.5 million) compared to a €75 million (£57.34 million) profit last year, mainly due to missing development milestones on the military airlift plane, the A400M.

Despite the problems with the A400M, EADS doubled its order intake in 2007 to €136.8 billion (£104.6 billion) on a surge in demand at Airbus - up 120 per cent - and growth in defence.

The group's board is proposing to hold the dividend at €0.12 (9p) per share, the same as last year, despite the loss.

"Paying a dividend – even if it is limited and despite a net loss – is more than a gesture of appreciation for the shareholders' loyalty: it's clearly an expression of confidence in the outlook for the years ahead, despite the challenges we will have to overcome," EADS chief financial officer Hans Peter Ring said.

Shares in EADS dropped four per cent in morning trading to €16.59 (£12.69).