Boeing Announces Profitability In Second Quarter
Boeing’s Integrated Defense Systems (IDS) revenues improved 3 percent to $8 billion in the 2007 second quarter, as higher aircraft deliveries and higher volume in support services offset the loss of revenue from the 2006 formation of the United Launch Alliance (ULA) joint venture with Lockheed Martin, Boeing announced July 25.
ULA formed to provided launch services to the U.S. government, began operations in December. Combining the companies’ resources was projected to save between $100 million and $150 million on launch costs each year while enabling the ULA to generate nearly $2 billion in estimated annual revenue.
The Network & Space Systems segment posted revenues of $2.9 billion in the quarter, which closed June 30. Revenues were flat compared to the same period in 2006, as a commercial Delta launch and higher volumes in other programs offset the revenues that were lost to ULA. The segment reported an operating profit increase from $108 million in the 2006 second quarter to $256 million in the most recent three months.
Overall, Boeing reported second quarter 2007 net earnings of $1.1 billion as compared to a loss of $160 million in the 2006 second quarter. The company credited the profit to strong performances in commercial airplanes and defense work.