Through TheFLY's Eyes: Boeing

from Theflyonthewall.com











Boeing Posts Q2 Loss On Charges

Boeing (BA), the world’s second-largest commercial jet manufacturer, reported its first quarterly loss in three years, due to military program production delay penalties and other one-time charges. Boeing reported Q2 EPS of (21c), in-line with the consensus estimate of (21c). Boeing said revenue increased to $15.0B, slightly ahead of the $14.95B consensus estimate.

Boeing shares moved sharply lower Wednesday on the report, down $3.24 to $80.51 at mid-day.

Analysts were mixed on Boeing’s Q2 report. JP Morgan said the settlement penalties cut created a downside, and while the company raised guidance it may not be quite enough to satisfy bulls in the current market. On the upside, commercial jet revenue rose a respectable 10% to $7.11B, indicating that Boeing’s building order backlog of commercial jet orders is hardly a fluke: Boeing said Wednesday it will deliver 395 commercial jets in 2006, up 36% from 2005, and up to 445 in 2007.

Boeing is counting on its new, state-of-the-art 787 wide body aircraft to help reshape global air transportation, calculating that in the decade ahead consumers will favor faster point-to-point travel over more time-consuming, connection-based routes undertaken by larger planes featured by Airbus.