Boeing had to announce a downward adjustment of its fourth-quarter and full-year earnings results yesterday to reflect a reduction in the value of aircraft in its customer financing portfolio and a rise in liabilities tied to an arbitration award. The change resulted in a four-cent-per-share lower result than it reported on January 28 in its Form 10-K filing with the U.S. Securities and Exchange Commission. Therefore, its fourth quarter 2008 loss now stands at 12 cents per share and its full-year earning per share fell to $3.67.

“Since the earnings report back in January, Boeing Capital had received what I’ll call essentially aircraft industry Kelly Blue Books that reflected lower collateral values for some of the airplanes that are in Boeing Capital’s portfolio,” a Boeing spokesman explained to AIN. “So that new information led BCC to reassess the allowances that they carry for losses or potential losses on their leases as of year-end 2008. Therefore, those allowances increased and that flowed through to the bottom line.” 

The spokesman wouldn’t elaborate on the arbitration award, citing confidentiality agreements. Boeing’s 10-K filing refers to a February 4 arbitration award for damage to a Boeing-made satellite caused by an orbit irregularity. However, the filing indicated that the award wouldn’t materially affect Boeing’s financial position.