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Wednesday January 7, 2009
Reuters
Boeing Reports Loss After Government Settlement

Boeing on Wednesday reported a quarterly loss as it took USD$1.1 billion of previously announced charges to settle government investigations into its defense unit and to cover the costs of delayed surveillance aircraft.

Boeing, which is outselling its European commercial aircraft rival Airbus more than two-to-one this year, cut its full-year earnings forecast to account for the charges, but raised forecasts for next year on strong plane sales.

Boeing reported a loss of USD$160 million for the second quarter, compared with a profit of USD$566 million in the year-ago quarter.

Revenue rose 2 percent to USD$15 billion.

The loss came after a USD$615 million settlement with the US Department of Justice, announced last month, to end two high-profile criminal investigations into its hiring of a former Air Force weapons buyer and its appropriation of thousands of Lockheed Martin rocket program documents.

Boeing also took a charge of USD$496 million to cover the extra costs of delayed surveillance aircraft being produced for Australia and Turkey. Last month, the company said it would take a charge of USD$300 million to USD$500 million for the delay.

The company said it had a record USD$220 billion of work in its backlog, up from USD$213 billion at the end of the last quarter. Boeing's commercial plane unit accounted for USD$141.7 billion of that.

Last year Boeing reported a record 1,002 net commercial jet orders, including many for its popular new mid-sized, long range 787, most of which is made from carbon composites and titanium to save weight and cut fuel consumption.

So far this year the company has 510 firm plane orders on its online order book, after a flurry of orders last week at Britain's Farnborough air show.

(Reuters)

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