Wednesday October 21, 01:04 PM
Boeing posts worse than expected quarterly figures
WASHINGTON (AFP) - Boeing (NYSE: BA - news) on Wednesday announced worse than expected quarterly figures, posting a loss of 1.56 billion dollars on one-time charges to modify its 787 Dreamliner and the new version of its 747 jumbo jet.
Although the charges had been previously announced, the loss amounting to 2.23 dollars per share was steeper than anticipated by analysts.
Revenues in the third quarter, up 9.1 percent at 16.7 billion dollars, were also below market expectations.
"The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defense business," said Boeing chairman and chief executive Jim McNerney.
"We look forward to getting the 787 and 747-8 in the air soon and moving forward with flight test and certification for these two important programs."
Boeing had announced on June 23 a fifth delay in the 787 Dreamliner program to fix a structural problem on the side of the aircraft, which is seen as key to the company's future.
In October, the Chicago-based company announced a one billion dollar charge against third-quarter earnings due to increased production costs and a difficult market for its 747-8 program.
The Boeing Commercial Airplanes unit suffered an operating loss of 2.8 billion dollars due to the charges, even though revenues increased 13 percent to 7.9 billion dollars.
Boeing Integrated Defense Systems had an operating profit of 885 million dollars as revenues rose three percent to 8.7 billion for the unit focused on military and space operations.
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