Boeing, Boeing profits fall on weak commercial satellite market

Manufacturing News, Source : TheManufacturer.com
Published : 18 Apr 2002 10:06

Boeing, the world's largest aerospace and defence group, reported a net loss of $1.25 billion for the first quarter, down from a net profit of $1.24 billion a year ago.

The loss was primarily a result of a $1.8 billion non-cash charge for accounting changes covering the value of goodwill in previous acquisitions.

Underlying net profits (excluding non-recurring items and accounting changes) declined by 21 per cent from $761m or 89 cents per share to $602m or 75 cents per share despite a four per cent increase in turnover from $13.29bn to $13.8bn.

The results were below Wall Street expectations and Boeing shares fell by $1.70 or 3.5 per cent in early trading.

Phil Condit, Boeing chairman and chief executive, said "significant action" was being taken to resolve problems in commercial satellite production including cuts in the workforce, a reduction in the number of manufacturing sites and a streamlining of design processes.

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