Boeing’s profit rises 17% in 2nd quarter
Boeing Co. announced second-quarter profit growth Wednesday fueled largely by growth in its defense business.
The Chicago aerospace company reported revenue of $17.1 billion and profit that was 17 percent higher than for the same period last year. Boeing’s St. Louis-based Integrated Defense Systems posted revenue of nearly $8.7 billion, a 9 percent increase over the second quarter of 2008.
"The fundamental operating engine of this company is running very well right now," said Boeing President and CEO Jim McNerney.
But McNerney also expressed disappointment in schedule delays that dog the 787 Dreamliner. Boeing postponed the first 787 flight to reinforce an area within the side-of-body section of the plane.
During a conference call with the media and industry analysts, McNerney said Boeing’s defense business faces some challenges because of shifting priorities in U.S. defense spending.
Pentagon spending proposals for next year called for capping U.S. orders for the C-17 Globemaster III transport plane and reducing the number of St. Louis-built F/A-18 Super Hornets by nine planes. Later, Congress added eight C-17s in the emergency war spending bill this year.
And there’s support in Congress for increasing Super Hornet orders next year and possibly more multiple-year orders of the fighter jets life insurance quotes.
But Boeing officials warned employees last week that defense cuts will cost IDS about 1,000 jobs. Specifically, Boeing cited reduced funding on the Ground-based Midcourse Defense Program and an end to the ground vehicle program in the Army’s Future Combat Systems.
"We believe we will retain a major role in both programs, although at a reduced scope, which unfortunately will have an impact on our revenues and employment," McNerney said Wednesday.
Last week, about 70 Boeing employees working on the Army modernization program received 60-day layoff notices at several sites. Most of those were in the Huntington Beach, Calif., office, a program spokesman said. More notices will be issued at the end of the month.
An additional 250 workers assigned to the Ground-based Midcourse Defense Program also received layoff notices in Alabama and three Western states.
Shares of Boeing closed Wednesday at $42, down $1.02.
Filed under: business by Specialist