Boeing (BA) Looks to Stem Large Headwind with Proposed Accounting Change
Tweet
Share
E-mail
Get Alerts BA Hot Sheet
Join SI Premium – FREE
Boeing (NYSE: BA) may alter pension accounting methods moving forward as it looks to become more transparent and regain investor confidence.
Last month, the aerospace giant reported a 6 percent drop in profit, with EPS being hit 18 cents on higher expenses tied to retirement plans.
At an investor event today, CFO Greg Smith said the the company might shift to a mark-to-market method of pension accounting, which is gaining further traction among a wider range of U.S. industrial groups. Those that are for the method say that accounting is more transparent due to significant gains and losses being recognized annually instead of being spread out over time. Those against note that earnings reports could become more volatile on the change. A decision on the matter is expected in January.
Some peers already using the mark-to-market method include UPS (NYSE: UPS), Johnson Controls (NYSE: JCI), Honeywell (NYSE: HON), and more. Shares of Boeing are modestly higher Tuesday.
Last month, the aerospace giant reported a 6 percent drop in profit, with EPS being hit 18 cents on higher expenses tied to retirement plans.
At an investor event today, CFO Greg Smith said the the company might shift to a mark-to-market method of pension accounting, which is gaining further traction among a wider range of U.S. industrial groups. Those that are for the method say that accounting is more transparent due to significant gains and losses being recognized annually instead of being spread out over time. Those against note that earnings reports could become more volatile on the change. A decision on the matter is expected in January.
Some peers already using the mark-to-market method include UPS (NYSE: UPS), Johnson Controls (NYSE: JCI), Honeywell (NYSE: HON), and more. Shares of Boeing are modestly higher Tuesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Okta upgraded as AI security opportunity boosts outlook
- CoreWeave (CRWV) Reiterated at Neutral by DA Davidson Amid Rising Cost of Capital
- Terreno Realty Corp (TRNO) PT Raised to $75 at KeyBanc on 'Improving Demand'
Create E-mail Alert Related Categories
Insiders' Blog, Management CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
