Boeing remains optimistic for 2010 despite posting a sharp fall in profits
AIRCRAFT manufacturer Boeing saw a sharp fall in profits during the first six months of the year after plane deliveries were hit by problems, and government spending cuts hit its defense business.
The US-based group saw profits fall from 2009’s $1.6bn (£1bn) to $1.3bn, marking a 19 per cent drop for the period, with the sharpest fall in the second quarter when Boeing’s profits dropped by more than a fifth to $787m.
Boeing delivered nine per cent fewer aircraft during the six-month period as a result of “challenges” with its seat suppliers and lower deliveries of transatlantic planes.
Half-year revenue for its commercial airplanes business was $14.9bn, down 12 per cent from 2009. The group’s defence, space and security division saw sales for the same period fall five per cent to $15.5bn.
“Continued strong results from our major businesses drove another solid quarter of operational performance for the company,” said Boeing chairman, president and chief executive officer Jim McNerney.
Boeing signed a bumper number of contracts at last week’s Farnborough Air Show, including a mammoth $9.1bn deal with Emirates to deliver 30 of its 777 planes.
Meanwhile, Boeing hopes that the first delivery of its eco-friendly 787 Dreamliner will take place before the end of the year.