Boeing space earnings down in 2002
Posted: Sat, Feb 1, 2003, 9:31 AM ET (1431 GMT)
Boeing's space and communications division reported lower earnings in 2002 because of the weakness in the launch vehicle and satellite markets. The Space and Communications division of Boeing's Integrated Defense Systems unit reported revenues of $10.97 billion in 2002, slightly higher than the $10.36 billion reported in 2001. Earnings, however, were sharply lower in 2002: $357 million, down from $619 million in 2001. The company said that decreased commercial satellite and Delta 2 volume as well as weaker NASA business offset increased military business. The lower earnings figure includes a $100 million charge taken earlier in 2002 when Boeing wrote off its investment in Teledesic. Nearly half of Boeing's 2002 earnings came in the fourth quarter, when the company recorded $170 million in earnings on $3.22 billion in revenue. The company said that in the fourth quarter favorable contract settlements offset cost growth in commercial satellite programs and the termination of a satellite contract by a customer. The continued weak outlook in the commercial space sector may lead to additional restructuring. Space News reported that Boeing CEO Phil Condit said that more changes were in store for the satellite manufacturing unit, including the possible sale of some unspecified assets.
Boeing's space and communications division reported lower earnings in 2002 because of the weakness in the launch vehicle and satellite markets. The Space and Communications division of Boeing's Integrated Defense Systems unit reported revenues of $10.97 billion in 2002, slightly higher than the $10.36 billion reported in 2001. Earnings, however, were sharply lower in 2002: $357 million, down from $619 million in 2001. The company said that decreased commercial satellite and Delta 2 volume as well as weaker NASA business offset increased military business. The lower earnings figure includes a $100 million charge taken earlier in 2002 when Boeing wrote off its investment in Teledesic. Nearly half of Boeing's 2002 earnings came in the fourth quarter, when the company recorded $170 million in earnings on $3.22 billion in revenue. The company said that in the fourth quarter favorable contract settlements offset cost growth in commercial satellite programs and the termination of a satellite contract by a customer. The continued weak outlook in the commercial space sector may lead to additional restructuring. Space News reported that Boeing CEO Phil Condit said that more changes were in store for the satellite manufacturing unit, including the possible sale of some unspecified assets.
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