Boeing 2016 net profit down 5%; revenue to decline again in 2017
Boeing reported a 2016 net profit of $4.9 billion, down 5% from net income of $5.2 billion in 2015, marking the company’s second straight year of declining earnings.
Full-year 2016 revenue fell 2% year-over-year to $94.6 billion, and Boeing projected revenue will drop again in 2017 to $90.5-$92.5 billion. Boeing’s 2015 revenue of $96.1 billion was a company record.
Boeing’s earnings continue to be negatively affected by charges from the 787, 747-8 and KC-46 aerial refueler programs.
Boeing is forecasting commercial aircraft deliveries in the 760-765 range in 2017, a rebound from 2016’s fall to 748 deliveries and in line with 2015’s 762 deliveries, which was a company record.
Boeing Commercial Airplanes posted a $3.1 billion operating profit in 2016, down 39% from an operating profit of $5.2 billion in 2015. The unit’s 2016 revenue decreased 1% year-over-year to $66.1 billion and full-year operating margin fell three percentage points to 4.8%. Commercial Airplanes revenue is projected to drop again in 2017 to $62.5-$63.5 billion, but the unit’s operating margin is expected to rebound to 9.5%-10%.
Boeing took revenue hits in 2016 in both its military aircraft and network & space systems businesses, which reported year-over-year revenue declines of 7% and 9%, respectively.
Source: Air Transport World/ January 2017
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