By Julie Johnsson | President Obama’s recently enacted health care legislation took its toll on Boeing Co. earnings as the Chicago-based aerospace company reported a $150 million non-cash charge, or $0.20 per share, for a future tax benefit that it will lose as a result of the new law.

The charge contributed to a 15 percent drop in Boeing’s net income of $519 million, or $0.70 per share, compared to prior-year results. Revenues at the Chicago aerospace company fell 8 percent to $15.2 billion as it delivered fewer airplanes to customers than in early 2009: 108 versus 121.

However, analysts were encouraged by signs that Boeing operations are
getting back on track and that the worst of its development problems
with the 787 Dreamliner aircraft and 747-8 jumbo jet may be in the past.

Boeing said that it intended to begin delivering both aircraft to
customers by years-end, turning programs that have been a drain on its
finances into sources of revenue.

With global airlines recovering from the recent recession, Boeing is
seeing a strong surge in demand for its aircraft and will decide this
quarter whether to boost production of its top-seller, the 737 jet, this
quarter, Boeing CEO Jim McNerney said Wednesday morning. The company
has already announced plans to speed production rates for the 777 and
new, stretched version of the 747

Late Tuesday evening, Boeing announced that it had received expanded
type inspection authorization for the 787 from the FAA, which will clear
the way for more of its engineers to participate in test-flights to
collect data on the new aircraft.

Boeing also said it had finalized the aerodynamic configuration of the
787. “We have completed sufficient testing to decide that no additional
changese to the external lines or shape of the airplane are required,”
said Scott Fancher, vice president and general manager of the 787
program.

Analysts were encouraged by the improving operating margin for Boeing’s
commercial airplane business, 9.1 percent compared to 4.9 percent a year
ago.

But observers continue to closely monitor the cash burned by Boeing as
it completes research and development costs on the new planes and
advances cash to suppliers who have been squeezed by the long delays to
both planes. Boeing and its suppliers aren’t fully paid until airplanes
are delivered to customers.

Boeing reported negative free cash flow of $471 million for the quarter,
but said it still has reserves of $10.4 billion in cash and short-term
securities to draw from.

“This was a decent quarter for Boeing,” wrote analyst Rob Stallard of
Macquarie Securities in a research report Wednesday morning. “In our
view, the key is for Boeing to keep executing to this forecast,
particularly on the 787, and enjoy the improving macro backdrop for
global airlines (post volcano).”