Boeing Forecasts Drop in 2016 Earnings, Sending Share Prices Lower

Boeing reported profits of $1.2 billion on revenues of $23.5 billion in the final three months of last year, according to a company announcement.

WASHINGTON (Sputnik) — "Fourth quarter 2015 results reflect the previously announced $569 million after-tax charge on the 747 program as a result of a slow recovery in the air cargo market, which was partially offset by solid core operating performance across the company," the announcement said on Wednesday.

Boeing also said its projected profits this year would fall 10 percent from 2015.

Boeing is the world’s largest aerospace company. It designs, manufactures and sells airplanes, helicopters, rockets and satellites, with customers in 150 countries. It is also the second largest US defense contractor.

Wednesday’s profit forecast sent share prices as low as $115.02, compared with a 52 week high of $158.82, according to media reports.

Boeing said last week it would reduce production of its 747-8 jumbo jet airplane from one each month to one every two months, which created the one-time charge of $569 million in the fourth quarter of 2015.