Boeing reports $234 million loss after unexpected costs

The company reported loss due to elevated costs for an Air Force contract and for commercial air production

Boeing reported a second-quarter loss on Wednesday due to elevated costs for an Air Force contract and for commercial air production as it confirmed its full-year plane deliveries targets.

The US aerospace giant lost $234 million for the quarter ending June 30 following $2.1 billion in unexpected charges announced last week.

The cost is smaller-than-expected loss as compared to $1.1 billion in earnings in the year-ago quarter. Revenues were $24.8 billion, above the $24.0 billion projected by analysts.

The charges covered elevated costs associated with the KC-46 tanker program, a next-generation military refueling aircraft, as well as for building the Boeing 787 Dreamliner midsized aircraft and its 747-8 cargo plane.

The loss prompted Boeing to trim its full-year earnings forecast. However, Boeing confirmed other key targets, including its revenue outlook.

"The underlying operating performance of the company remains solid with our commercial and defense teams again delivering strong revenues and operating cash flow," said Boeing chief executive Dennis Muilenburg.

"Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future."

Shares of Boeing rose 1.0% to $136.20 in pre-market trade.