Boeing raises annual profit forecast

Boeing has raised its forecasts for profit this year, despite a charge of $329m over the KC-46 aerial refuelling tanker.

The aircraft manufacturer now expects to earn $12.5bn (£9.4bn) in 2017, up from its last forecast of $12.25bn.

The KC-46 aircraft is in the late stages of testing and certification - a process that has been more costly than Boeing originally thought.

Boeing delivered a record 202 commercial aircraft in the quarter.

That contributed to a a 1.7% rise in sales during the period. However, net income dropped 19% to $1.9bn.

Chairman Dennis Muilenburg said: "We remain focused on accelerating productivity, quality and safety improvements across the company, executing our future development programmes and capturing new business."

Boeing's shares dropped by 0.8% in pre-market trading.