Aerospace & Defense

Boeing shares fall 7 percent on report of SEC probe

SEC to probe Boeing accounting: Report

Boeing shares fell Thursday after a report that regulators are investigating accounting practices for two of its jetliners.

The Securities and Exchange Commission is looking into the aerospace giant's projections about the long-term profitability of its well-known 787 Dreamliner and 747 jumbo aircraft, Bloomberg reported, citing people with knowledge of the matter. The probe surrounds so-called program accounting, which allows Boeing to spread upfront costs of manufacturing over a longer period of time.

"We typically do not comment on media inquiries of this nature," Boeing told CNBC.

Its shares closed nearly 7 percent lower Thursday.

The report comes amid a string of recent difficulties for Boeing. On Wednesday, the airplane maker said it would trim jobs at its commercial airplane unit to cut costs.

Late last month, Boeing reported fourth-quarter net income of $1.51 per share on $23.57 billion in revenue. Its earnings fell from $2.02 per share in the previous year, while sales were down 4 percent.

The company's results reflected an after-tax charge of $569 million that it took as it cuts production of its 747-8 planes in half. Boeing will scale back production starting in September due to weakness in commercial air freight.

Boeing shares have plunged more than 25 percent this year.

Reuters contributed to this report.