BBC Home
Explore the BBC
BBC News
Launch consoleBBC NEWS CHANNEL
Last Updated: Wednesday, 26 July 2006, 14:06 GMT 15:06 UK
Boeing posts loss on probe costs
Boeing 737 aeroplane taking off
Boeing is predicting strong demand for its commercial jets
US planemaker Boeing has reported a quarterly loss, after it paid to bring to an end government investigations into its defence division.

It also had to finance costs relating to delays of a surveillance system.

Boeing had a net loss of $160m (87m) in the quarter to 30 June, compared with a profit of $566m a year earlier. However, sales rose 2% to $15bn.

The company had already announced it would have to pay out charges of $1.1bn in the second quarter.

In line

Boeing cut its 2006 earnings targets because of the charges, but said it expected profits to pick up the following year.

Despite posting its first loss in three years, Boeing is still seeing its business pick up - and has retaken the lead it lost five years ago to European rival Airbus.

Chicago-based Boeing has sold more than twice as many commercial aircraft as Airbus this, year as the European firm has been beset by production problems and scandal.

"Everything was very much as we anticipated," said Paul Nisbet, an analyst at JSA Research.

The one-off costs Boeing faced included $615m to settle with the US Department of Justice.

The payment related to investigations into its hiring of an ex-Air Force weapons buyer, and into how the company came to have thousands of Lockheed Martin documents in its possession.

Boeing also paid $496m to cover extra costs from delays to a surveillance system for Australia and Turkey.

Emirates deal boosts Boeing sales
18 Jul 06 |  Business
Plane market 'to see huge growth'
12 Jul 06 |  Business
Falling demand for Airbus planes
11 Jul 06 |  Business
Boeing optimistic on aid dispute
03 May 06 |  Business
Boeing profits top market targets
26 Apr 06 |  Business
Boeing will build 'stretch' 787
27 Mar 06 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific