(MENAFN- AFP) More unexpected costs in its huge refueling tanker program for the US Air Force and slower commercial aircraft deliveries dented Boeing's first-quarter earnings, the company reported Wednesday.
Boeing took a $156 million charge for unanticipated costs in the KC-46 program, pushing earnings for the quarter ending March 31 down 8.8 percent from a year ago to $1.2 billion. That translated into $1.74 per share, nine cents below analyst expectations.
Revenues were $22.6 billion, up 2.2 percent from the year-ago period.
The latest unexpected costs on the KC-46, a next-generation military refueling aircraft, adds to a $536 million charge taken on the same program in the second quarter of 2015.
Boeing said all four of the planned KC-46 test aircraft are now flying and that refueling tests have been successful with several types of aircraft. First deliveries of the KC-46, called "Pegasus," are planned for August 2017.
Operating profits from Boeing's commercial airplane business dived 36.1 percent to $1.0 billion as Boeing delivered eight fewer aircraft compared with the first quarter of 2015.
In January, Boeing said it expected commercial aircraft deliveries to fall in 2016, marking the first annual decline since 2010.
Operating profits in military aircraft rose 10.6 percent to $822 million behind increased deliveries of the F-15 fighter aircraft and the G-17 military transport.
"Overall, we are pleased with our performance trends and our outlook for the year remains positive," said Boeing chief executive Dennis Muilenburg.
"On the tanker program, we are making the investments necessary to meet our customer commitments, deliver the initial production aircraft on schedule and transition the program into full production."
Wednesday's results from Boeing were a "mixed bag," said RBC Capital Markets.
"Whilst you can't sugar-coat yet another tanker charge ... at least cashflow came in better than expected," RBC said.
Boeing projected 2016 revenues of $93 to $95 billion and core earnings per share of $8.15 to $8.35. These are the same forecasts the aerospace giant released in January.
Analysts have projected Boeing revenues for the year at $93.7 billion and earnings of $8.48 per share.
Boeing shares fell 0.5 percent in pre-market trade to 132.60.
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