Delays hurt Boeing's 2Q profit, which falls 19 pct

But the Chicago-based company, the world's second-largest commercial airplane maker after Europe's Airbus, reaffirmed its forecasts for 2008 and 2009, saying productivity gains would overcome the quarter's setbacks.

Shares of the Boeing tumbled nearly 4 percent Wednesday afternoon after the company reported its earnings.

Boeing posted profits of $852 million, or $1.16 per share, for the three months ended June 30, compared with $1.05 billion, or $1.35 per share, a year earlier.

Revenue remained essentially flat at $17 billion.

Analysts polled by Thomson Financial, on average, expected profit of $1.23 per share on revenue of $17.24 billion.

The results included a previously disclosed charge of $248 million for Boeing's Airborne Early Warning & Control program due to delays in delivering six military aircraft to Australia. It said annual gains would offset the charge.

Lower commercial airplane profit also cut into overall results

Boeing's commercial airplane business reported a 19 percent decline in quarterly earnings from operations, to $777 million from $960 million last year, due to customer and model mix, expense timing and costs tied to its long-delayed 787.

Quarterly revenue for the unit fell 2 percent to $8.57 billion from $8.71 billion.