Civilian plane demand is down

Boeing has confirmed it is under investigation by the US authorities for using information from a rival defence company in a bid for a military contract.

The US Justice Department is carrying out a criminal and civil investigation into the plane maker's alleged activities.

Boeing said it is cooperating fully with investigators but declined to give further details.

According to the Wall Street Journal, a former employee of Boeing rival Lockheed Martin handed over details about Lockheed's rocket programme.

Profits warning

Boeing was subsequently awarded the contract, to make the Atlas Five rockets used to launch US government satellites.

The former Lockheed employee, Kenneth Branch, was allegedly hired to work on the project.

Boeing's share price dropped 42 cents, or 1.47%, to $28.20 (�17.55), on news of the investigation.

The case could potentially damage Boeing's reputation as a defence contractor, at a time when it is increasingly relying on that part of its business to generate profits.

Last month, the company issued a profits warning after reporting a $478m loss for the first quarter.

It blamed a "severe" downturn in air travel, which has forced airlines to cut orders.

Military spending remained "quite strong", it added, which "somewhat offset" the losses on passenger jets and its satellite business.