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Boeing swings to third quarter profit

written by australianaviation.com.au | October 21, 2010
photo - Boeing

The Boeing Company has recorded third quarter net income of US$837m (A$853m), which it says reflects strong performance across its core businesses.

The strong profit compared favourably to the net loss of US$1.56bn (A$1.59bn) it experienced during the same period last year. Revenue over the quarter was up two per cent to US$16.9bn (A$17.2bn), while the company also increased its earnings guidance for the full year to between US$3.80-$4.00 (A$3.90-$4.08) per share.

“Our results and revised outlook reflect the continued strong performance of our commercial production and services programs and the ability of our defence businesses to produce solid results in a challenging environment,” said Jim McNerney, Boeing chairman, president and chief executive officer. “Orders were particularly encouraging, with a multi-year production contract for 124 F/A-18 aircraft and more than 200 net commercial airplane orders booked in the quarter, increasing our backlog and demonstrating improved overall market confidence.”

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Boeing Commercial Airplanes delivered an 11 per cent increase in revenue over the quarter to US$8.7bn (A$8.9bn) as deliveries rose by 10 per cent. Over the same period it booked orders for 257 aircraft and 36 cancellations. Operational earnings were up strongly at US$1bn (A$1.02bn), with the previous corresponding period affected by writedowns attributed to the 787 program.

Boeing Defense, Space and Security had a more challenging three months, with revenue falling six per cent to US$8.2bn (A$8.4bn), reflecting lower revenue across its three operating divisions. That dragged down operational earnings by 23 per cent to US$684m (A$697m).

An improved outlook from Commercial Airplanes has led Boeing to increase its expected earnings, while it has also said that it expects its revenue in 2011 to be higher than 2010, although that year’s revenue will be impacted by the revised 787 and 747-8 delivery schedules.

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