1Q earnings: solid performance despite charges

Boeing reported increased revenues and reduced earnings in the first quarter of 2002. Quarterly revenues totaled $13.8 billion, up 4 percent from the previous-year period. Net earnings for the period totaled $602 million, excluding non-recurring items and adoption of a new accounting standard, on operating margins of 7.4 percent. During the previous-year period, the company reported net earnings before non-recurring items of $761 million, on operating margins of 9.2 percent.

"Overall, [first-quarter] financials reflect solid performance across almost all of our aerospace and finance businesses," said Boeing Chairman and CEO Phil Condit in an April 17 conference call with analysts and reporters. The current quarter charges were attributed to higher stock compensation expenses and cost performance issues in the company's commercial satellite unit. Together with the previously announced, $1.8-billion noncash after-tax charge to adopt Statement of Accounting Standards No. 142, (SFAS 142), the company experienced a net loss of $1.25 billion for the quarter, or $1.54 a share.