PARIS, July 30 (Reuters) - Europe's Airbus

reported sharply lower second-quarter profits on Tuesday as the

cost of investing in higher jetliner production, coupled with

largely pre-announced charges in its Space Systems business,

outweighed higher revenue.

The world's largest planemaker said adjusted operating

profit fell by more than half to 813 million euros ($878.5

million) in the quarter as revenue edged up to 15.995 billion

euros.

It also took a charge of 989 million euros on forward losses

in its space business, slightly higher than the estimate of

about 900 million euros given with a profit warning last month.

Analysts were on average expecting second-quarter adjusted

operating income of 699 million euros on revenue of 15.822

billion, according to a survey compiled by the company.

($1 = 0.9254 euros)