Fall in profits at Boeing

Fall in profits at Boeing

A fall in deliverers has prompted a sharp slide in profits at Boeing.

The aircraft manufacturer recorded a net profit of $787 million (£504 million) - or $1.06 per share - for the three months to June, down 21 per cent on the figure of $998m for in the same period last year.

Group revenue also fell, to $15.6 billion from $17.2 billion a year earlier.

Earnings were, however, ahead of analysts expectations.

Despite the fall in revenue, Boeing described its performance as “solid” and stated it would maintain its 2010 revenue, earnings per share and operating cash flow outlook.

“Continued strong results from our major businesses drove another solid quarter of operational performance for the company,” said Boeing chairman Jim McNerney.

“We are making progress on key commercial and military development programs, our production programs and services businesses are running well, and our enterprise focus on productivity improvement is funding investment in growth while maintaining our financial strength.”

A fall in aircraft deliveries was singled out by the airline as a cause for the drop in profits.

Boeing delivered 114 commercial aircraft during second quarter of 2010, down from 125 a year earlier, while across the first six months of 2010 deliveries fell ten per cent to 222.

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World Trade Organisation

Boeing has been celebrating a double victory recently, with the World Trade Organisation ruling European subsidies to rival Airbus illegal, while recording strong sales at the Farnborough International Air Show.

However, persistent problems with the flagship Dreamliner project have seen delivery estimates slip back to 2011.

All Nippon airways is first in line to receive the new aircraft, but design and supply problems have seen the project fall over two years behind schedule.