Boeing returns to profit in the second quarter

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Boeing Company has returned to profit in the second quarter, with net earnings of $1.7 billion compared to a loss of $234 million the previous year.

The loss in the second quarter of 2016 was due to an R&D reclassification of $1.2 billion on the 787 program, a $1.2 billion pre-tax charge for the 747 program and a pre-tax charge of $354 million on the KC-46 Tanker program.

Boeing chairman, president and chief executive officer, Dennis Muilenburg says the outlook for 2017 is positive, saying: “Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.”

He adds: “In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defense, space and services, while achieving important milestones such as delivering the first 737 MAX airplane, flying the second production-ready T-X trainer aircraft, and conducting a successful Ground-based Midcourse Defense intercept test.”

Commercial Airplanes deliveries were down eight per cent to 183 in the second quarter and down six per cent in the first half to 352.

During the quarter, the first 737 MAX 8 was delivered and the 737 MAX 10 launched.

Revenue was down 10 per cent during the quarter to $15.7 billion and six per cent to $30 billion in the first half.

Net earnings were $1.5 billion in the quarter compared to a loss of $973 million in 2016, and up from $60 million in the first half of 2016 to $2.7 billion.