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Tuesday, November 12th, 2019

Boeing’s profit hit by tanker charge; outlook unchanged

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by April 27, 2016 General
Boeing maintains its full-year profit and revenue forecast although its earnings fell in the first quarter. The EPA file photo dated Feb 19, 2008, shows Boeing staff walking past a Boeing model plane on display at the Singapore Airshow.

Boeing maintains its full-year profit and revenue forecast although its earnings fell in the first quarter. The EPA file photo dated Feb 19, 2008, shows Boeing staff walking past a Boeing model plane on display at the Singapore Airshow.

BENGALURU: Boeing Co on Wednesday reported a 9% drop in first-quarter profit, citing an after-tax charge from the KC-46 aerial refueling tanker it is developing for the US Air Force.

The world’s largest plane maker said it had earned US$1.22bil (RM4.78bil), or US$1.83 per share, compared with US$1.34bil (RM5.25bil), or US$1.87 per share, a year earlier. Its shares fell 1.8% to US$130.87 in premarket trading.

The company recorded a tanker charge of US$156mil (RM611.2bil), or 24 cents per share, in the quarter.

Boeing left its full-year profit and revenue forecast unchanged, suggesting it is confident it can make up for the added tanker expense in other parts of its business.

The company has said pricing pressure from rival Airbus prompted rigorous cost cuts this year, including eliminating as many as 8,000 jobs in its commercial airplane unit.

But the market has focused on risks of charges for Boeing’s 787 Dreamliner and tanker programmes. Earlier this year, the Pentagon said the tanker programme was at risk of falling behind schedule, and the 787 has accumulated significant deferred production costs.

Those deferred costs rose US$141mil (RM552.77mil) to US$28.65bil (RM112.32mil) in the latest quarter, a slowdown from prior quarterly increases.

Core earnings, which exclude pension and other costs, fell to US$1.74 per share from US$1.97.

Revenue rose about 2% to US$22.63bil (RM88.72bil).

Commercial aircraft deliveries fell 4.3% to 176.

Separately, short sales of Boeing stock, which reflect bets that its price will fall, rose to 27.4 million shares as of April 15, the highest level in at least a decade. – Reuters

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