Boeing Says Q4 Loss Wider Than Reported

February 10, 2009

Boeing said on Monday its fourth-quarter net loss was four cents a share wider than it reported late last month, due to a decline in the value of planes in its financing portfolio and the effect of an arbitration award.

As a result, the plane maker said its fourth-quarter net loss was 12 cents per share and its full-year 2008 net income was USD$3.67 per share.

On January 28, Boeing reported an unexpected fourth-quarter loss of USD$56 million, or 8 cents per share, caused by a strike by its machinists' union, extra costs due to delays on the newest version of its 747 jumbo and a one-time litigation charge.

The company said the receipt of new third-party aircraft value publications led to a reduction in the collateral values of aircraft in its customer financing portfolio.

Boeing sometimes provides financing for airlines to buy its planes through its Boeing Capital unit.

It said it also had to increase its liabilities resulting from an arbitration award, but gave no further details.

Boeing made no adjustment to its financial forecasts for 2009. Its shares closed down 12 cents at USD$42.80 on the New York Stock Exchange.