Boeing employees assemble 787 Dreamliners at the companys Everett Wash plant Stephen Brashear, Getty Images

Boeing employees assemble 787 Dreamliners at the company's plant in Everett, Washington.

Boeing Earnings Fall on Tanker Charge

Revenues for the quarter increase more than 11%, though earnings drop close to 33% thanks to a hefty charge previously announced related to an Air Force aerial refueling tanker program.

Aerospace giant Boeing reported lower profits Wednesday and trimmed its full-year forecast following a previously-announced charge on an aerial refueling tanker program for the Air Force.

The drop in profits was expected after Boeing announced Friday that it would take a $536 million charge due to higher estimated engineering and manufacturing costs on the KC-46A tanker. Boeing has committed to delivering 18 tankers to the Air Force by August 2017, with a total of 179 tankers due by 2027.

The company’s earnings for the second quarter fell 32.8% to $1.1 billion, while its revenues rose 11.3% to $24.54 billion. As a result of the tanker charge, Boeing trimmed its 2015 earnings forecast to $7.70-$7.90 per share from $8.20-$8.40.

"Strong operating performance across our commercial and defense production programs partially offset the tanker charge and enabled us to maintain our commitments to return cash to our shareholders and invest in innovation and our people," Boeing chief executive Dennis Muilenburg said.

Boeing is on track to break a new annual record for commercial aircraft deliveries after 381 deliveries in the first half of 2015.

Wednesday's results translated into $1.62 per share, 25 cents above analyst expectations. Boeing shares rose 1.3% to $146.89 in pre-market trade.

Copyright Agence France-Presse, 2015

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