Boeing Swings to Loss, but Results Still Top Views

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 [e-mail]

(END) Dow Jones Newswires

July 27, 2016 08:55 ET (12:55 GMT)

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