Boeing Swings to Loss, but Results Still Top Views
July 27 2016 - 9:10AM
Dow Jones News
Boeing Co. swung to a loss in the latest period and slashed its
earnings outlook for the year, hurt by large charges related to
expensive setbacks with the production of its commercial and
military jets.
But the loss was less than analysts feared, and shares rose 1.7%
to $137.15 in premarket trading.
The company sees full-year adjusted per-share earnings between
$6.10 and $6.30, down from an earlier range of $8.15 and $8.35. The
consensus estimate for profit in 2016 was $5.34 a share, according
to Thomson Reuters.
The company announced last week that charges related to stumbles
in production would wipe out $3.23 from second quarter earnings.
The charges —which are rooted in delays related to developing its
new Air Force refueling tanker, demand concerns about its biggest
jetliner, the 747-8 jumbo, and the original high costs of its 787
Dreamliner, its most advanced jetliner—are part of a yearslong
hangover of high initial development costs on the crucial new
programs.
Over all, Boeing reported a loss of $234 million, or 37 cents a
share, compared with a year-earlier's profit of $1.1 billion, or
$1.59 a share, a year earlier. Excluding items, the adjusted loss
in the latest period was 44 cents a share.
Revenue rose 1% to $24.76 billion. Analysts had projected a loss
of 92 cents a share on $24.12 billion in sales, according to
Thomson Reuters.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 27, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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