spacetoday.net: Boeing reports loss, restructures space units

Posted: Wed, Jul 23, 2003, 2:21 PM ET (1821 GMT)
Boeing

The Boeing Company reported a loss in its fiscal second quarter on Wednesday because of charges to its launch vehicle and satellite manufacturing units, and also announced plans to restructure those units. Overall, Boeing reported a loss of $192 million in the quarter ending June 30, on revenues of $12.8 billion; the company had recorded a profit of $779 million on $13.9 billion in revenues in the same quarter of 2002. The launch and orbital systems unit of the company recorded a loss of $1 billion for the quarter on revenues of $770 million after including a $1.03 billion charge announced last week to account for decreased demand and increased costs of its launch vehicles and spacecraft. Late Tuesday the company announced a reorganization of its commercial space units that will largely subsume them within other units that primarily perform government work. Under the reorganization Boeing Satellite Systems will become part of the company's Space and Intelligence Systems unit. Expendable Launch Systems, which produces the Delta 2 and 4 boosters, will become part of Air Force Systems, while Rocketdyne, which builds rocket engines for the space shuttle and Delta boosters, will become part of NASA Systems.