The Boeing Company (NYSE:BA) reports quarterly loss on charges. The company reported 2Q16 net loss of $0.37 per share, including a $3.23 per share impact. $BA said its 787 cost reclassification resulted in a charge of $1.33 per share while the 747 program generated a charge of $1.28 per share. The KC-46 Tanker program accounted for a charge of $0.62 per share. It delivered 199 commercial airplanes in 2Q16. Commercial airplanes revenue in the quarter increased 3% to $17.5Bil on higher volume and price mix, the company said.
$BA cut its 2016 EPS outlook to $6.40 - 6.60 per share from its prior forecast of $8.45 - 8.65 per share to reflect the 787 R&D reclassification and the 747 and Tanker charges. $BA also reduced its outlook for operating margin from commercial airplanes to 4.5% - 5.0% from about 9%. The company maintained its 2016 revenue outlook of $93.0 - 95.0Bil. During the call, $BA said that on the 747 program, the company decided to reduce future production expectation and revenue assumptions to account for current and anticipated weakness in the air cargo market. Despite the air cargo market challenges, $BA is seeing 747 as a unique value creator for its customers over the long run.
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Submitted July 27, 2016 at 07:00PM by Robert-Phillips http://ift.tt/2anJO9k
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