Boeing sees quarterly profits fall by a third

Boeing sees quarterly profits fall by a third

Boeing suffered a 33% fall in quarterly profits after taking a charge over delays to a military refueling aircraft.

Net earnings for the three months to the end of June were down to $1.11 billion from $1.65 billion a year earlier.

Boeing took a $536 million charge over its efforts to solve an issue with the fuel system on its KC-46A tanker.

However, overall revenue for the three months rose by 11% to $24.5 billion helped by record commercial aircraft deliveries, which rose 9% from a year earlier to 197.

The manufacturer booked 171 orders in the quarter and has a backlog of almost 5,700 aircraft worth $431 billion.

Boeing is on track to break a new annual record for commercial aircraft deliveries after 381 deliveries in the first half of 2015.

The company also maintained its annual revenue forecast of between $94.5bn and $96.5bn.

Boeing president and chief executive, Dennis Muilenburg, said: “Record commercial airplane deliveries to customers worldwide drove solid revenue growth, and the strength of our overall portfolio and diligent focus produced significant operating cash flow during the quarter.

“Strong operating performance across our commercial and defence production programs partially offset the tanker charge and enabled us to maintain our commitments to return cash to our shareholders and invest in innovation and our people.

“Overall, our outlook for the second half of the year remains positive.”


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