Boeing profits dip as aircraft sales nosedive

Click to follow
The Independent Online
SECOND-quarter profits at Boeing, the US aircraft manufacturer, fell from dollars 426m to dollars 222m as sales of commercial aircraft fell to dollars 5.4bn, against dollars 8bn last time.

But the results were at the higher end of expectations and Boeing said the profits fall was the result of lower corporate investment income and higher interest costs, as well as fewer aircraft sales.

Frank Shrontz, chairman, said aircraft sales for the second half would run at 20 per cent below those for the first half. He predicted Boeing would deliver 111 commercial jets in the six months, after 149 deliveries in the first half. Despite forecasting that 1995 would be a slow year, Mr Shrontz was 'optimistic about the longer-term global market opportunities' as worldwide economic conditions and airline operating results improved.

Boeing has won orders for 53 commercial aircraft, worth dollars 3bn, including an order from Singapore Airlines for 10 747s. Its newest aircraft, the 777, is due to begin passenger service in May 1995 and is undergoing flight testing.

The defence and space division continued to put in a solid performance, with first-half sales totalling dollars 2.2bn against dollars 2.1bn for the same period last year.