Boeing profits hit by KC-46A charge
US aerospace firm Boeing has reported a 33% fall in quarterly profit after taking a charge over delays to a military refueling aircraft.
Boeing said net earnings for the three months to the end of June were $1.11bn (£710m) from $1.65bn a year earlier. Boeing took a $536m charge over its efforts to solve an issue with the fuel system on its KC-46A tanker plane. Boeing has committed to delivering 18 tankers to the US Air Force by August 2017, with 179 due by 2027. As a result of the charge, Boeing now expects core earnings of $7.70-$7.90 per share for 2015, down from its previous forecast of $8.20-$8.40 per share. However, the Boeing said overall revenue in the quarter rose 11% to $24.5bn helped by record commercial airplane deliveries, which rose 9% from a year earlier to 197. Boeing is on track to break a new annual record for commercial aircraft deliveries after 381 deliveries in the first half of 2015. The company also maintained its annual revenue forecast of between $94.5bn and $96.5bn. "Record commercial airplane deliveries to customers worldwide drove solid revenue growth, and the strength of our overall portfolio and diligent focus produced significant operating cash flow during the quarter," said Boeing president and chief executive Dennis Muilenburg said. He added: "Strong operating performance across our commercial and defence production programs partially offset the tanker charge and enabled us to maintain our commitments to return cash to our shareholders and invest in innovation and our people."