Boeing posts loss and cuts 2004 outlook

Boeing, the world's largest aircraft maker, today reported a net loss for the second quarter due to $1

Boeing, the world's largest aircraft maker, today reported a net loss for the second quarter due to $1.1 billion in charges at its satellite-making unit, and cut its 2004 revenue and profit forecasts.

The company also trimmed its forecast for commercial jet deliveries next year and repeated a warning that the depressed airline industry is not likely to recover before 2005.

Boeing said it lost $192 million, or 24 cents per share, in the second quarter, its second straight quarterly net loss. But the results were much better than the average loss estimate of 43 cents by analysts.

For the first quarter, Boeing reported a net loss of $478 million, including one-time charges. For the 2002 second quarter, it posted a profit of $779 million, including one-time gains.

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Second-quarter revenue fell to $12.79 billion from $13.86 billion a year earlier, reflecting a slump in jetliner sales to airlines battered by an epic travel slump. Airlines have delayed or cancelled hundreds of jets on order.

Boeing cut its forecast for commercial jet deliveries in 2004 to a range of 275 to 290, from a prior estimate of 275 to 300. It said it had booked firm orders for 90 percent of those projected 2004 deliveries, or about 248 aircraft, and was on track to deliver 280 jetliners this year.

Boeing delivered 381 jetliners last year and 527 in 2001.

The special charges in the second quarter at the company's defence and space unit, which reduced profits by $693 million, or 87 cents per share, reflected persistent problems in the satellite-making unit and a lack of demand for commercial satellite launches by its Delta IV rocket program.

Excluding its satellite unit, Boeing's military and space division posted generally strong results, including its aircraft and weapons business, where profits grew even as revenue fell 4 per cent to $2.5 billion.