Boeing sees revenues nudge upward in second quarter

(Source: Internet)

Boeing has reported second-quarter revenue of $24.8 billion on strong commercial deliveries and services growth, up one per cent on last year.

GAAP loss per share of $0.37 and core loss per share of $0.44 reflect the previously announced 787 cost reclassification ($1.33 per share) and charges on the 747 program ($1.28 per share) and the KC-46 Tanker program ($0.62 per share), partially offset by solid execution and higher volume.

“The underlying operating performance of the company remains solid with our commercial and defence teams again delivering strong revenues and operating cash flow.

“Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future,” said Boeing chairman Dennis Muilenburg.

“Our strong cash generation also supported our ongoing commitment to invest in product innovation and in our people, and return substantial cash to shareholders through stock repurchases and dividends.”

GAAP earnings per share guidance for 2016 has been adjusted to between $6.40 and $6.60 from $8.45 and $8.65 and core earnings per share (non-GAAP) guidance has been adjusted to between $6.10 and $6.30 from $8.15 and $8.35 to reflect the impact of the 787 R&D reclassification and the 747 and Tanker charges, solid performance and tax benefits.

“As we look forward to the second half of the year, we anticipate continued strong operating performance across our production and services programs on generally healthy demand for our broad portfolio of market-leading offerings.

“Our commercial airplane development programs remain on track and we have successfully completed the flight testing required for customer approval of key KC-46 production milestones,” added Muilenburg.

“Overall our teams remain intensely focused on improving productivity and quality, building out our large and diverse backlog, investing in future growth, and delivering increasing value to all of our stakeholders.”

Boeing delivered 199 commercial aircraft in the second quarter of 2016, compared with 197 last year.