Boeing posts lower-than-expected second-quarter loss, stock gains
By Alwyn Scott
NEW YORK (Reuters) - Boeing Co (BA.N: Quote) reported a smaller-than-expected second-quarter loss on Wednesday, cushioned by strong performances in its jetliner and defense businesses.
The world's biggest plane maker warned last week it planned to take $3 billion in pretax charges related to its 787, 747 and KC-46 tanker aircraft programs.
But the quarterly loss of 44 cents a share in so-called core results, which excludes some pension and other expenses, was less than half the 93-cent loss that analysts expected, on average, according to Thomson Reuters I/B/E/S.
Analysts said Boeing produced more aircraft at higher operating profit margins. The company also notched down its full-year forecast by just $2.05 a share, significantly less than the after-tax charges of $3.23 a share. That suggested Boeing is confident that margins will stay firm in the second half, said Ken Herbert, analyst at Canaccord Genuity.
Still, investors remained concerned about a cyclical downturn, a weak global economy and softening demand, factors other industrial companies cited in recent days.
"Boeing still faces a tough environment with increasing competition," said Jeff Windau, an analyst at Edward Jones in St. Louis.
Boeing shares rose 3 percent in early trading, but by mid-afternoon they eased and were up 1.2 percent at $136.46 on the New York Stock Exchange.
Boeing said its decision to slow down payments to suppliers this year was an important strategic move to align its payment processes with industry standards. Reuters reported the change on July 7. Continued...