Reuters

(Reuters)

Boeing Reports 2Q Loss Hit by Charges

Industries Reuters

Boeing 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.

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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 pension and other costs, it posted a loss of 44 cents per share, compared with earnings of $1.62 per share a year earlier.

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.

Revenue rose about 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.

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Boeing is now targeting earnings of $6.40 to $6.60 a share for full-year 2016, down from $8.45 to $8.65. Core earnings are expected to be $6.10 to $6.30, down from $8.15 to $8.35.

Shares rose 1.6 percent to $137.00 in premarket trading.

 

(Reporting by Alwyn Scott in New York and Sweta Singh in Bengaluru; Editing by Sriraj Kalluvila and Jeffrey Benkoe)