World Economy

Boeing Profit Hit by Tanker Charge

Boeing Profit Hit by Tanker ChargeBoeing Profit Hit by Tanker Charge

Boeing Co on Wednesday reported a 9% drop in first-quarter profit, citing an after-tax charge from the KC-46 aerial refueling tanker it is developing for the U.S. Air Force.

The world’s largest plane maker said it had earned $1.22b, or $1.83 per share, compared with $1.34 billion, or $1.87 per share, a year earlier. Its shares fell 1.8% to $130.87 in premarket trading, Reuters reported.

The company recorded a tanker charge of $156m, or 24 cents per share, in the quarter.

Boeing left its full-year profit and revenue forecast unchanged, suggesting it is confident it can make up for the added tanker expense in other parts of its business.

The company has said pricing pressure from rival Airbus prompted rigorous cost cuts this year, including eliminating as many as 8,000 jobs in its commercial airplane unit.

But the market has focused on risks of charges for Boeing’s 787 Dreamliner and tanker programs. Earlier this year, the Pentagon said the tanker program was at risk of falling behind schedule, and the 787 has accumulated significant deferred production costs.

Those deferred costs rose $141m to $28.65 billion in the latest quarter, a slowdown from prior quarterly increases.