Boeing reports 2016 Q2 loss of US$234 compared to 2015 Q2 profit of US$2.45bn

A US$2.1bn charge for R&D is predominantly responsible for a massive swing in Q2 operating profit for Boeing between 2015 and 2016, though consolidated revenue was up 0.9% year-on-year (YOY) at US$24.76m. Prior to the R&D charge the Q2 operating profit for 2016 was US$2.43bn, which, YOY, was down 23.9%. The company has reported a consolidated loss of US$419m compared to an operating profit of US$1.68bn in Q2, 2015. According to Dennis Muilenburg, Chairman, President and CEO Boeing, “The underlying operating performance of the company remains solid with our commercial and defense 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.” The Commercial Airplanes division of Boeing reported US$17.46bn in revenue for Q2, up 3.4% YOY, having delivered 199 aircraft during the quarter compared to 197 aircraft delivered in Q2 2015. 152 net orders have been booked for commercial aircraft during Q2 – the current backlog now stands at 5,700 aircraft with a value of US$417bn. The 787 program R&D write off and pre-tax charges on the 747 and KC-46 tanker programs were responsible for the Commercial Airplanes division’s Q2 operating margin for the quarter at a negative 5.6%—reversed from a 7.1% positive operating margin in Q2, 2015. Boeing reported strong operating cash flow of US$3.2bn, repurchased 15 million shares for US$2.0bn.