US aerospace giant Boeing reported lower profits Wednesday and trimmed its full-year forecast following a previously-announced charge on an aerial refuelling tanker program for the US Air Force. Earnings for the second quarter fell 32.8 percent to $1.1 billion. Revenues rose 11.3 percent to $24.54 billion.
The drop in profits was expected after Boeing announced Friday that it would take a $536 million charge due to higher estimated engineering and manufacturing costs on the KC-46A tanker. Boeing has committed to delivering 18 tankers to the air force by August 2017; a total of 179 tankers is due by 2027. As a result of the tanker charge, Boeing trimmed its 2015 earnings forecast to $7.70-$7.90 per share from $8.20-$8.40.
Boeing is on track to break a new annual record for commercial aircraft deliveries after 381 deliveries in the first half of 2015. "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," said Boeing chief executive Dennis Muilenburg. Wednesday's results translated into $1.62 per share, 25 cents above analyst expectations. Boeing shares rose 1.3 percent to $146.89 in pre-market trade.
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