Boeing says Q2 results will contain 22-cent charge for delays

Posted Jul 10th 2008 10:31AM by Joseph Lazzaro
Filed under: Forecasts, Boeing Co (BA)

Boeing said Thursday its Q2 results will contain a charge "of approximately 22 cents per share on previously acknowledged delays on its airborne early warning & control program."

Boeing (NYSE: BA) added that it continues to expect F2008 and F2009 earnings per share of $5.70-$5.85 and $6.80-$7.00, respectively.

The Reuters F2008 and F2009 earnings per share consensus estimates are $5.97 and $6.97, respectively.

Boeing's shares fell 30 cents to $65.29 in pre-market trading on the news

Stock analyst C. Leonard Bauer said Boeing's 22-cent "is unfortunate," but not something that changes Boeing's solid, strong commercial aerospace story, as a value proposition. "Boeing is still on-track to deliver earning growth in 2008 and 2009, which is no small achievement given current U.s. economic conditions," Bauer said. Bauer added that he does not have a rating on nor own shares in Boeing.

Boeing said the pre-tax charge of roughly $250 million is primarily due to development issues on electronic warfare and ground support systems and additional time needed for testing. Boeing is scheduled to report Q2 earnings on July 23.

Tags: BA, Boeing, commercial aviation, inthenews