US : Boeing posts 2nd-quarter loss, cushioned by defense profit
Wed Jul 27 2016
Nikki Bailey (1073 articles)

US : Boeing posts 2nd-quarter loss, cushioned by defense profit

NEW YORK : Boeing Co on Wednesday reported its first quarterly loss in nearly seven years, hit by charges related to the 787, 747 and KC-46 tanker aircraft programs.

The world’s largest jetliner maker reported a net loss of $ 234 million, or 37 cents per share, for the second quarter. It recorded a net profit of $ 1.11 billion, or $ 1.59 per share, a year earlier.

Excluding some pension and other costs, it posted a loss of 44 cents per share, compared with earnings of $ 1.62 per share a year earlier. Analysts, on average, expected a loss of 93 cents a share, according to Thomson Reuters I/B/E/S.

The loss reflects $ 3.23 per share in charges announced last week stemming from reclassification of 787 costs and unexpected expenses for the 747 and KC-46 refueling tanker programs.

Revenue rose 1 percent to $ 24.8 billion.

The results reflected increased deliveries of twin-aisle commercial aircraft, and better profitability in its defense, space and security business. While revenue in the unit fell 5 percent, profit rose 9 percent.

To reflect the charges, Boeing is now targeting earnings of $ 6.40 to $ 6.60 a share in 2016, down from $ 8.45 to $ 8.65. Adjusted earnings are expected to be $ 6.10 to $ 6.30, down from $ 8.15 to $ 8.35.

Shares rose nearly 2 percent to $ 137.46 in premarket trading.

Boeing’s delivery of jets rose about 1 percent in the quarter from a year ago.

Deliveries of twin-aisle 787s and 777s were up about 12 percent and 8 percent, respectively. But the company is delivering fewer 737s as it begins production of the successor 737 MAX jet. Those deliveries are expected to rise next year once the new plane is certified and begins service.

Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York