US- Aerospace giant Boeing Co. contributed US$445m (e343m) to its pension plans in the first quarter of this year, and anticipates making total pension contributions of $1bn during 2005.
The US$445m discretionary contribution was in addition to pre-tax first quarter pension expenses of US$223m - an increase of $151m over pension expenses for the same time period in 2004. Boeing attributed part of this increase in pension expenses to the charges associated with the sale of its Electron Dynamic Devices business. The company also anticipates contributing $500m to pensions in 2006.
The company reported the pension contributions in its report on first quarter 2005 results. The cost of non-cash expenses for share-based plans, deferred compensation and pensions offset core business performance, driving quarterly earnings down to $687m from $824m for the first quarter of 2004.
“First quarter results reflect continued strong operational and financial perormnce across our businesses and d160,000 people of Boeing remain keenly focused on delivering value to customers and shareholders,” said James Bell, Boeing’s president and CEO. “Our cash flow remins very strong, driven by solid earnings and excellent working capital performance.”
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