Boeing has reported a net loss of $234 million in its second quarter report and a loss of 37 cents per share, in part due to unforeseen costs concerning the developing KC-46 refueling tanker programs.
“The underlying operating performance of the company remains solid with our commercial and defense teams again delivering strong revenues and operating cash flow. Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future,” President and Chief Executive Officer Dennis Muilenburg said in a call with reporters on Wednesday. “Our strong cash generation also supported our ongoing commitment to invest in product innovation and in our people, and return substantial cash to shareholders through stock repurchases and dividends.”
Last year, Boeing reported a net profit of $1.11 billion and $1.59 per share in its second quarter. Despite the net loss from 2015 numbers, Boeing’s total revenue increased 1 percent from last year to $24.8 billion.
The KC-46 tanker was supposed to be delivered to the Air Force starting in August 2017, but after catching problems in test flights, new projections estimate the Air Force will receive the planes in January 2018. Modifications to the aircraft will cost Boeing and additional $354 million prior to taxes.
Boeing hasn’t reported a revenue loss since 2009.
Demand is still high for Boeing equipment, with a backlog reaching $472 billion and almost 5,700 commercial airplane orders and a backlog from defense, space & security was $55 billion.
“Overall our teams remain intensely focused on improving productivity and quality, building out our large and diverse backlog, investing in future growth, and delivering increasing value to all of our stakeholders,” Muilenburg said.
