Post by corsair67 on Oct 27, 2006 11:42:52 GMT 12
This story is from AAP
Boeing's profits in nosedive
October 26, 2006.
US aviation giant Boeing has said its quarterly profits have dived 31 per cent as it pulled the plug on its in-flight internet service.
The Chicago-based group, which also produces defence and space equipment, has said its third-quarter net profits declined to $US694 million ($917.56 million), compared with $US1 billion ($1.32 billion) in the same period of 2005.
Although Boeing's earnings per share moderated to 89 US cents, compared with $US1.26 a year ago, they still came in ahead of Wall Street forecasts that had called for 63 US cents.
However, Boeing's shares lost altitude over concerns about mounting research and development costs, particularly for the company's long-range, fuel-efficient 787 Dreamliner.
Boeing's stock ended down $US2.73, or 3.3 per cent, at $US80.86 against wider market gains.
"As we continue to drive our growth and productivity efforts, we aim to achieve a new level of consistently strong financial performance," said Boeing chief executive Jim McNerney.
Revenues came in at $US14.7 billion ($19.44 billion) for the quarter, a rise of 19 per cent from the third quarter of 2005.
Boeing said that its quarterly earnings had been hurt by its scrapping of an in-flight internet service called Connexion, which the company said it was ending in August.
As a result Boeing had to swallow a pre-tax charge of $US280 million ($367 million) to terminate the program after six years.
Connexion offered passengers high-speed web access over a satellite-based broadband connection, but only 12 airlines, mostly Asian carriers flying long-haul such as Japan Airlines and Singapore Airlines, had signed up.
Boeing's profits in nosedive
October 26, 2006.
US aviation giant Boeing has said its quarterly profits have dived 31 per cent as it pulled the plug on its in-flight internet service.
The Chicago-based group, which also produces defence and space equipment, has said its third-quarter net profits declined to $US694 million ($917.56 million), compared with $US1 billion ($1.32 billion) in the same period of 2005.
Although Boeing's earnings per share moderated to 89 US cents, compared with $US1.26 a year ago, they still came in ahead of Wall Street forecasts that had called for 63 US cents.
However, Boeing's shares lost altitude over concerns about mounting research and development costs, particularly for the company's long-range, fuel-efficient 787 Dreamliner.
Boeing's stock ended down $US2.73, or 3.3 per cent, at $US80.86 against wider market gains.
"As we continue to drive our growth and productivity efforts, we aim to achieve a new level of consistently strong financial performance," said Boeing chief executive Jim McNerney.
Revenues came in at $US14.7 billion ($19.44 billion) for the quarter, a rise of 19 per cent from the third quarter of 2005.
Boeing said that its quarterly earnings had been hurt by its scrapping of an in-flight internet service called Connexion, which the company said it was ending in August.
As a result Boeing had to swallow a pre-tax charge of $US280 million ($367 million) to terminate the program after six years.
Connexion offered passengers high-speed web access over a satellite-based broadband connection, but only 12 airlines, mostly Asian carriers flying long-haul such as Japan Airlines and Singapore Airlines, had signed up.
