spacetoday.net: Boeing space unit records loss

Posted: Wed, Jul 28, 2004, 6:49 PM ET (2249 GMT)
Boeing

The division of The Boeing Company that handles launch vehicles and satellites reported a loss in its fiscal second quarter, although company officials remained optimistic that the unit would become profitable by next year. The Launch and Orbital Systems business unit, part of Boeing's Integrated Defense Systems division, reported a loss of $50 million on revenues of $672 million in the second quarter of 2004. Revenues were down 13% from the same quarter of 2003, but the loss was much smaller because of a one-time charge Boeing took last year that resulted in a billion-dollar loss that quarter. Boeing blamed a decline in satellite activity for the decline in revenues for the quarter, while cost growth on certain satellite programs caused the loss for the quarter despite profitability for the unit's NASA programs. During a conference call Wednesday morning company executives said they still believed that the space unit would be able to turn itself around and break even in 2005. Boeing CEO Harry Stonecipher said he believed the unit would lose between $50 and $100 million for the full year; so far this year the unit has lost $113 million. Boeing overall reported a second-quarter profit of $607 million on $13.1 billion in revenue.