Boeing Co on Wednesday reported its first quarterly loss in almost seven years, hit by charges related to the 787, 747 and KC-46 tanker aircraft programs. The adjusted per-share loss was 44 cents, which was better than Wall Street had expected.
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Boeing has reported a second-quarter loss of $US234 million ($A311.81 million), after reporting a profit in the same period a year earlier. Revenue rose to $24.8 billion from $24.5 billion, ahead of the FactSet consensus of $24.2 billion. “Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future”, CEO Dennis Muilenburg said in a company release. “Our strong cash generation also supported our ongoing commitment to invest in product innovation and in our people, and return substantial cash to shareholders through stock repurchases and dividends”.
The net loss in the latest quarter reflects $3.23 per share impact from reclassification of 787 costs and charges for the 747 and KC-46 tanker programs, the company said. The charges – which are rooted in delays related to developing its new Air Force refueling tanker, demand concerns about its biggest jetliner, the 747-8 jumbo, and the original high costs of its 787 Dreamliner, its most advanced jetliner – are part of a yearslong hangover of high initial development costs on the crucial new programs. The company decided against trying to refurbish and sell two test aircraft. “Our commercial airplane development programs remain on track and we have successfully completed the flight testing required for customer approval of key KC-46 production milestones”. Boeing lowered its profit forecast by $2.05 a share to a range of $6.10 to $6.30 a share.
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Boeing produces its 777 on a moving assembly line in Everett, Wash.
