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Boeing reports $468M profit
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July 25, 1996: 5:51 p.m. ET
Continental increases order for new planes
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NEW YORK (CNNfn) - Boeing Co. reported on Thursday a $468 million profit for the second quarter, in line with Wall Street estimates. The company was helped by tax benefits it received as compensation from a contract dispute with the U.S. government.
The company's earnings translated to a gain of $1.35 per share, compared with a $0.68 per share, or a $231 million loss in same period last year. That loss was attributed to a $500 million charge that the company took to cover the cost of early retirement incentives for workers. Without that charge, earnings for the second quarter rose $84 million over that period last year.
This year the company benefited from a $81 million after-tax gain that resulted from a settlement with the federal government over a contract for an air-defense system for Saudi Arabia. The U.S. government revoked Boeing's contract and subsequently gave it to Hughes Aircraft after the company missed several testing deadlines. In addition, Boeing included $95 million worth of other tax credits in this latest earning report.
In a related story, Continental Airlines announced Thursday that it was increasing its new aircraft order with Boeing to 61 from 43, with options for 23 additional planes. Continental also said that as these airplanes are delivered over the next six years, it would retire all 31 of its current fleet of Boeing 727's. The company said that this move was aimed at reducing the average age of its planes.
Boeing shares closed up 2-1/4 at 88-1/8 in Thursday trading.
From staff and wire reports. 
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