Boeing stock plunges on report of SEC accounting probe

SHARE Boeing stock plunges on report of SEC accounting probe
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Boeing Co.'s accounting for costs and expected sales of its Dreamliner and 747 aircraft is under investigation by the Securities and Exchange Commission, Bloomberg Business reported Thursday.

Shares of the Boeing Co. plummeted Thursday after a report said the U.S. Securities and Exchange Commission is investigating the aircraft manufacturer’s accounting.

Shares of the Chicago-based company fell 12 percent at one point during the day, about an hour after Bloomberg News published a report that said the SEC was looking into the cost and sales forecasts related to the 787 Dreamliner and 747.

Boeing spokesman Chaz Bickers told The Associated Press “we typically do not comment on media inquiries of this nature.” SEC spokesman Kevin Callahan declined to comment.

The company is under scrutiny for how it spreads out the upfront costs of making the 787 Dreamliner and 747 over several years, Bloomberg reported, citing unnamed sources. The investigation was prompted by a whistleblower complaint.

The SEC also is looking into whether Boeing’s sales forecasts were too optimistic.

The stock pared its losses after some analysts said the concerns about the SEC were overblown. Shares closed down $7.92, or 6.8 percent, at $108.44.

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