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Boeing profits drop 19 percent

Latest update : 2008-07-23

US aerospace giant Boeing reported quarterly profit of $852 million, a decrease of 19 percent compared to the same period last year. The company acknowledged "some challenges", but maintains that it will acheive its annual goals.

Boeing reported Wednesday a 19 percent drop in quarterly profit to 852 million dollars, coming up short of Wall Street estimates but maintaining its outlook through 2009.

The US aerospace giant also said its key 787 Dreamliner program remains on schedule for test flights late this year and initial deliveries in the third quarter of 2009.

Boeing said it second-quarter net income amounted to 1.16 dollars per share, shy of the Wall Street consensus of 1.23 dollars.

Revenues for the period to June 30 were essentially flat compared with the same period a year ago at 17 billion dollars.

"While we faced some challenges this quarter that affected our results, we remain confident in our outlook for the remainder of this year and 2009," said chairman, president and chief executive Jim McNerney.

"Strong global demand for our products and services, a record backlog, and a sustained focus on productivity improvement and execution will continue to drive growth and profitability for this company."

Boeing reaffirmed its 2008 earnings guidance of between 5.70 and 5.85 dollars per share as well as its 2009 earnings per share guidance of between 6.80 and 7.00 dollars.

Boeing said its profit was impacted by the delay in the Dreamliner program which pushed back some revenues and a previously disclosed charge for a delay on its airborne early warning defense programs.

Boeing said progress on the new 787 Dreamliner "continues on the revised schedule announced in April" after a series of delays.

"Having completed the power-on milestone, the program is in the final stages of assembly of the first airplane in preparation for flight test," the company said.

"While Boeing continues to address challenges associated with assembly of the initial airplanes, the program has achieved meaningful improvements in the completeness of structure and systems installation."

To date, the program has won orders for 896 airplanes from 58 customers.

The Boeing Commercial Airplanes nit saw a two percent revenue drop to 8.6 billion dollars and operating profits slumped some 20 percent to 777 million dollars "due to customer and model mix," and the delays in the 787 program.

Boeing said its Integrated Defense Systems' revenues were flat at 7.9 billion dollars and operating profits slipped 25 percent to 637 million dollars, hurt by the chargeoff of 248 million dollars.

Date created : 2008-07-23

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