Boeing Reports Loss For First Time Since 2009

Boeing (NYSE: BA - news) has posted a quarterly loss for the first time in nearly seven years after absorbing write-downs totalling $3bn (£2.29bn).

The aerospace company lost $234m (£178m) in the second quarter as weakness in the air cargo market means it will be producing fewer of its 747-8 freighter jets than initially estimated.

It (Other OTC: ITGL - news) also decided against refurbishing and selling its two 787 Dreamliner test aircraft - planes which were beset by battery fires and electrical faults when they first launched.

Technical issues have also been reported with its KC-46 Pegasus Tanker, a mid-air refuelling plane it is manufacturing for the US Air Force.

Problems found during test flights mean delivery of the 18 tankers may be five months' late - forcing Boeing to write-off a further $354m (£270m) on top of the charges it has already incurred.

Despite these woes, shares in Boeing have risen, with "strong commercial deliveries and services growth" prompting revenues at the Chicago-based company to rise 1% to $24.8m (£18.9bn) for the second quarter.

Boeing's chief executive, Dennis Muilenburg, said the write-downs were the "right, proactive steps to reduce risk and strengthen our position for the future".

A few days ago, a major supplier to Boeing alleged the company was being "delinquent" by falling as much as $40m (£30.5m) behind on bills for cockpit equipment and other electrical components.

Meanwhile, there was better news for the France-based Airbus Group (Swiss: AIR.SW - news) on Wednesday.

Profits for the first half of the year stood at €1.76bn (£1.47bn) - up from €1.52bn (£1.27bn) for the same period in 2015.

However, some of this increase was related to the sale of its stake in Dassault Aviation (LSE: 0IAX.L - news) , as Airbus has also encountered teething troubles and losses linked to its long-awaited A350 passenger plane - billed by some as its answer to Boeing's Dreamliner.