Business

July 25, 2012

Boeing second net income up; raises outlook

by Samantha Bomkamp
Associated Press

Boeing posted a surprise improvement in second-quarter net income July 25 as demand for passenger jets thrived and its defense business held its own.

The maker of 737 aircraft and F-18 fighter jets also raised its earnings forecast for the year, suggesting demand for new planes could insulate it from the sluggish global economic environment.

Boeing’s 3-percent profit increase handily beat forecasts from Wall Street analysts, who worried that sales in Boeing’s defense unit would fall amid lower defense spending in the U.S. and Europe. Boeing said that it was reining in costs to prevent revenue in the segment that produces Chinook helicopters and F-18s from being hit.

Boeing, which is based in Chicago, reported net income of $967 million, or $1.27 per share, for the April-June period compared with $941 million, or $1.25 per share, a year earlier.

Revenue jumped 21 percent to $20 billion from $16.54 billion a year ago.

Analysts polled by FactSet expected earnings of $1.14 per share on revenue of $19.25 billion.

Defense revenue rose 7 percent, while revenue in the commercial airplane division jumped 34 percent. The divisions are roughly the same size, but some analysts were concerned that their earnings would go in opposite directions. Both segments faced higher costs in the second quarter. Total expenses were up 30 percent.

Boeing’s defense unit is vulnerable to potentially severe military spending cuts in January. The cuts will be automatic unless Congress agrees to alternatives for cutting the deficit. The military would face $492 billion in cuts over a decade, with domestic spending reduced by another $492 billion over 10 years.

For now Boeing’s defense unit is strong. Second-quarter revenue growth is about the same as Boeing saw in the first three months of the year.

Boeing’s commercial airplane unit, meanwhile, is speeding production and deliveries of its new 787. That will move planes that have been mostly finished, but undelivered, out of inventory and turn them into cash. Boeing is also booking firm orders for its new 737 Max, a redesigned version of the model. July 25, the company said that Aeromexico plans to buy up to 100 of its planes – most of them the 737 Max – in a deal worth almost $11 billion.

For all of 2012, Boeing now expects to earn $4.40 to $4.60 per share, up from a previous forecast of $4.15 to $4.35 per share. Analysts estimate full-year earnings of $4.57 per share.

Earlier July 25 defense contractor Northrop Grumman posted second-quarter results that beat Wall Street estimates, and Lockheed Martin reported better-than-expected results July 24.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines September 2, 2014

News: Debris yields clues that pilot never ejected - When investigators were finally able to safely enter the crash site of an F-15C “Eagle” fighter jet on the afternoon of Aug. 27, they made a grim discovery that concluded more than 30 hours of searching – the pilot never managed to eject from the aircraft.  ...
 
 

News Briefs September 2, 2014

Pentagon: Iraq operations cost $560 million so far U.S. military operations in Iraq, including airstrikes and surveillance flights, have cost about $560 million since mid-June, the Pentagon said Aug. 29. Rear Adm. John Kirby, the Pentagon press secretary, said the average daily cost has been $7.5 million. He said it began at a much lower...
 
 

Unmanned aircraft partnership reaches major milestone

A team of research students and staff from Warsaw University of Technology have successfully demonstrated the first phase of flight test and integration of unmanned aircraft platforms with an autonomous mission control system. The demonstration marks a significant milestone in a partnership between the university and Lockheed Martin that began earlier this year. This is...
 

 

Raytheon delivers first Block 2 Rolling Airframe Missiles to US Navy

Raytheon delivered the first Block 2 variant of its Rolling Airframe Missile system to the U.S. Navy as part of the company’s 2012 Low Rate Initial Production contract. RAM Block 2 is a significant performance upgrade featuring enhanced kinematics, an evolved radio frequency receiver, and an improved control system. “As today’s threats continue to evolve,...
 
 
Courtesy photograph

Two Vietnam War Soldiers, one from Civil War to receive Medal of Honor

U.S. Army graphic Retired Command Sgt. Maj. Bennie G. Adkins and former Spc. 4 Donald P. Sloat will receive the Medal of Honor for actions in Vietnam. The White House announced Aug. 26 that Retired Command Sgt. Maj. Bennie G. A...
 
 

Sparks fly as NASA pushes limits of 3-D printing technology

NASA has successfully tested the most complex rocket engine parts ever designed by the agency and printed with additive manufacturing, or 3-D printing, on a test stand at NASA’s Marshall Space Flight Center in Huntsville, Ala. NASA engineers pushed the limits of technology by designing a rocket engine injector – a highly complex part that...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>