Boeing reports 33% fall in quarterly profit

Boeing reported second-quarter revenue increased 11% to US$24.5bn on record commercial deliveries. Second quarter 2015 results included the previously announced US$536mn after-tax charge on the KC-46 Tanker program reflecting higher estimated costs. Net earnings dropped 33% compared to the previous year. Core earnings per share (non-GAAP) guidance for 2015 has been adjusted to between $7.70 and $7.90 per share, from $8.20 and $8.40, to reflect the impact of the second quarter 2015 KC-46 Tanker charge ($0.77 per share), partially offset by strong performance ($0.27 per share). GAAP earnings per share has been adjusted to between $7.60 and $7.80, from $8.10 and $8.30. Commercial Airplanes second-quarter revenue increased 18% to US$16.9bn on higher delivery volume and mix. Second-quarter operating margin was 7.1%, reflecting the previously announced US$513 million pre-tax charge on the KC-46 Tanker program and the dilutive impact of higher 787 and 747 deliveries partially offset by strong performance on production programs. Commercial Airplanes booked 171 net orders during the quarter. Backlog remains strong with nearly 5,700 airplanes valued at US$431bn.