Boeing earnings up, but reports higher costs on tanker
Boeing reported a jump in second-quarter profits on 25 July due to higher commercial airplane deliveries but said costs on a closely-watched US Air Force (USAF) tanker contract had risen again.
The US aerospace giant reported net income of $2.2 billion, up 25.6%, while revenues rose 5.2% to $24.3 billion.
Boeing set aside $418 million in additional funds for the KC-46 tanker, a USAF plane that has repeatedly suffered cost overruns.
The latest cost increases were for incorporating changes into test and early-build aircraft and for additional expenses in late stage testing and certification. Boeing said it expects to deliver the first tanker to the USAF in October.
Boeing's commercial plane business prospered on an uptick in deliveries, as well as higher profit margins compared with the year-ago period as it increased production rates on its most popular offerings.
Boeing has benefitted from a multi-year surge in commercial jet demand as US carriers refresh their fleets and airlines in developing and emerging countries boost orders.
Boeing lifted its full-year revenue forecast to $97 billion - $99 billion, up $1 billion from the prior range. It projected slightly higher operating margins in commercial planes but slightly lower margins in defense.
Shares fell 2% to $351.00 in opening trading.
The US has not yet incorporated leading practices of a strategic management planning framework in Department of Defense (DoD) retrograde and reset guidance. That deficiency, ...
Sarcos Robotics has received a second contract from the US Air Force to continue development of an exoskeleton for logistics applications. The first contract was ...
Yulista has opened a new facility at the Southern Alabama Regional Airport (SARA) in Andalusia, Alabama, the company announced on 10 August. The complex has ...
Perspecta’s Vencore has received a five-year US Army Materiel Systems Analysis Activity (AMSAA) Sample Data Collection and Analysis (SDC&A;) follow-on contract, the company announced on ...
VSE Aviation subsidiary Prime Turbines has been selected by the Chilean Navy for the overhaul of two PT6A-25 turboprop engines, the company announced on 9 ...
The Royal Australian Air Force’s KC-30A Multi Role Tanker Transport aircraft has delivered 100,000,000lbs of fuel during air-to-air refuel missions on Operation OKRA in the ...