Boeing Posts Loss, Cuts Outlook - TheStreet

Boeing Posts Loss, Cuts Outlook

The company reduces its guidance for 2003 and 2004.
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Aerospace giant


(BA) - Get Report

reported a loss in the second quarter and reduced its guidance for 2003 and 2004, saying it continues to fight through the downturn that's hitting some of the company's main business lines.

The company posted a loss of $192 million, or 24 cents a share, in the second quarter, on revenue of $12.8 billion. In the same period a year ago, Boeing earned $779 million, or 96 cents a share, with revenue of $13.9 billion.

Earlier this month, the company said it would recognize charges related to its launch and satellite businesses. The charges decreased earnings for the quarter by $693 million, or 87 cents a share.

"We took strong actions this quarter to recognize and address the challenges in our commercial space businesses," Boeing Chairman and Chief Executive Phil Condit said in a press release. "Our strong defense portfolio again performed well, and commercial airplanes and Boeing Capital Corporation are successfully managing through the downturn for strong future returns."

The company kept its outlook for 2003 revenue unchanged at around $49 billion, but lowered its 2004 sales guidance to $52 billion from a range of $52 billion to $54 billion.

Additionally, Boeing said that when calculated according to generally accepted accounting principles, it could lose as much as 7 cents a share for this year or post a profit of up to 3 cents a share. Previously, the company forecast earnings of 68 cents to 88 cents a share. The company reduced its outlook for earnings before items to 95 cents to $1.05 a share from $1.70 to $1.90 a share.

Boeing now believes it will earn $1.75 to $1.95 in 2004, down from its previous guidance of $2.10 to $2.30 a share.

Shares of Boeing were down 34 cents to $32.23 on the

New York Stock Exchange