NEW YORK (CNNfn) - Citing lower margins for its commercial aircraft, Boeing Corp. reported second-quarter earnings of $258 million, well below Wall Street estimates.
The giant aircraft maker said its earnings equaled 26 cents a share, well below First Call estimates of 33 cents. Revenues totaled $13.4 billion.
A year earlier, Boeing earned $476 million, or 48 cents a share, on $12.3 billion revenue.
The company said this year's second-quarter results also reflect $78 million in charges related to the planned termination of its MD-11 program and additional late-delivery costs associated with next-generation 737 aircraft.
Much of the profit reduction, the company said, was due to lower margins from its commercial aircraft.
"Although commercial aircraft deliveries and sales were higher, the overall profit margin for the commercial aircraft segment was significantly lower due to the model mix of deliveries, production inefficiencies associated with the rapid increase in the commercial aircraft production rates, and continued pricing pressures and lower price-escalation trends," the company said.
Boeing said it increased the base prices for most commercial aircraft effective July 1, but it doesn't expect to see an impact on revenue or profit before the year 2000.
For the first half, Boeing earned of $308 million, or 31 cents a share, on $26.3 billion revenue. Those results are considerably lower than a year-ago, when earnings totaled $1 billion, or $1.03 a share, on $22.7 billion revenue.
Boeing (BA) shares closed at 47-3/4 in Wednesday trading, off 7/16.