US share prices dropped sharply late yesterday amid continuing worries about poor corporate earnings. The Dow Jones index lost 195.93 points, a drop of 2.15 per cent. Much of the fall followed a poor earnings report from Boeing, the US aerospace giant. Yesterday evening it reported a 45.7 per cent plunge in second quarter net profit that it attributed to increased competition and production delays.

The company said net profit came to $258 million (£184 million) in the quarter, down from $476 million in the same period of 1997.

Earnings per share were 26 cents, against 48 cents in second quarter last year, with sales at $13.4 billion against $12.3 billion.

Boeing shares fell $6, or 15 percent, in early trading.