Boeing Co. is feeling the squeeze as the Obama Administration pares military spending and the Chicago-based defense contractor is mulling layoffs and other measures to reduce its costs, Boeing CEO Jim McNerney told analysts Wednesday.

Boeing’s second quarter net income and revenues dipped as the aerospace manufacturer delivered fewer airplanes and encountered defense-spending constraints.

Chicago-based Boeing reported a net income of $787 million, down 21 percent from the year ago period, on revenues of $15.6 billion, which declined 9 percent. Although Boeing’s earnings per share of $1.06 were down 25 percent from the prior-year period, they still topped the $1.02 that analysts had estimated. Get the full story »