Boeing Announces $160 Million Loss On Legal Settlement

Boeing said July 27 it swung to a loss in the second quarter resulting from a legal settlement with the U.S. government and cost delays in a surveillance aircraft order. Boeing recorded a net loss of $160 million, compared with a net profit of $566 million for the same period a year ago.

The aircraft maker, which also produces defense and space equipment, said the quarter's results had been badly dented by just over one billion dollars in fees and charges related to the legal settlement and the surveillance aircraft order delay.

Boeing also said it was absorbing a $496 million charge related to delays over the delivery of high-tech surveillance aircraft to the Australian and Turkish governments.

Its results included a $615 million fee related to its settlement with the U.S. Justice Department following an investigation into the hiring of a former Air Force official, and Boeing's use of a competitor's proprietary information.

Revenues for the quarter rose two percent to $14.99 billion.

Copyright Agence France-Presse, 2006

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