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Boeing Co. said its quarterly profit fell as it awaited regulatory approval to resume deliveries of its 787 Dreamliner and charges continued to mount at its military and space unit.
The company on Wednesday reported a profit of $160 million, or 32 cents a share, for the three months to June 30 compared with $567 million, or $1, during the same period a year earlier.
The adjusted per-share loss of 37 cents, which excludes pension charges, fell short of the 13-cent loss consensus among analysts polled by FactSet. Sales in the quarter fell 2% to $16.7 billion, with analysts expecting $17.6 billion.
Arlington, Va.-based Boeing booked a $93 million charge on its Starliner space capsule in the quarter. Boeing successfully launched the Starliner in May, but incurred higher costs after a botched earlier mission. It also took a $147 million charge on its MQ-25 refueling drone as costs rose to meet requirements set by its U.S. Navy customer.
Boeing shares were recently up almost 3% in premarket trading.
The company said it had positive operating cash flow in the second quarter. It reiterated the target of generating surplus cash for the full year.
In this Sept. 30, 202, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing Co. reported more cancellations for its 737 Max (AP Photo/Elaine Thompson, File / AP Images)
"Even as we navigate a difficult environment, we are making progress across key programs and are beginning to hit significant milestones," said Chief Executive David Calhoun in a message to employees Wednesday.
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Boeing 777X (Boeing) (Boeing)
Monthly production of the 737 MAX has reached 31, up from 16 a year ago, as it deals with supply-chain challenges such as engine shortages that are also affecting rival Airbus SE, which reports quarterly earnings later Wednesday. Boeing has said it stepped up 737 deliveries in June.
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The Boeing logo appears above a trading post on the floor of the New York Stock Exchange before the opening bell, Monday, March 11, 2019. Boeing shares were predicted to fall at the open on Wall Street after the crash Sunday of a 737 Max 8 plane in E ( (AP Photo/Richard Drew) / AP Newsroom)
Executives have said they expect Boeing will soon receive regulatory approval to resume deliveries of its wide-body 787 Dreamliner. A series of production issues has kept the plane maker from handing over that jet to customers for much of the last two years, leaving it with more than $25 billion of the aircraft in inventory.
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