Boeing reports $234M loss after unexpected costs

NEW YORK, USA – Boeing reported a second-quarter loss Wednesday, July 27, 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 $234 million for the quarter ending June 30 following $2.1 billion in unexpected charges announced last week.

The smaller-than-expected loss compared to $1.1 billion in earnings in the year-ago quarter. Revenues were $24.8 billion, above the $24.0 billion projected by analysts.

The charges covered elevated costs associated with the KC-46 tanker program, a next-generation military refueling 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 1.0% to $136.20 in pre-market trade. (READ: Boeing nears landmark deal to sell planes to Iran Air) – Rappler.com