Boeing reports loss

July 28, 2016 by  
Filed under Aviation, News, North America

NEW YORK, 28 July 2016: Boeing reported a second-quarter loss Wednesday due to elevated costs for an Air Force contract and for commercial air production as it confirmed its full-year plane deliveries targets.

The US aerospace giant lost USD234 million for the quarter ending 30 June following USD2.1 billion in unexpected charges announced last week.

The smaller-than-expected loss compared to USD1.1 billion in earnings in the year-ago quarter. Revenues were USD24.8 billion, above the USD24.0 billion projected by analysts.

inside no 10The charges covered elevated costs associated with the KC-46 tanker program, a next-generation military refuelling aircraft, as well as for building the Boeing 787 Dreamliner midsized aircraft and its 747-8 cargo plane.

The loss prompted Boeing to trim its full-year earnings forecast. However, Boeing confirmed other key targets, including its revenue outlook.

“The underlying operating performance of the company remains solid with our commercial and defense teams again delivering strong revenues and operating cash flow,” said Boeing chief executive Dennis Muilenburg.

“Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future.”

Shares of Boeing rose 1% to USD136.20 in pre-market trade.

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