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 11, 2014

News: Obama ready to strike at Islamic State militants in Syria, he tells policy experts - President Obama is prepared to use U.S. military airstrikes in Syria as part of an expanded campaign to defeat the Islamic State and does not believe he needs formal congressional approval to take that action, according to people who have...
 
 

News Briefs September 11, 2014

U.S. airstrikes in Iraq hit Islamic State vehicles The U.S. military says it launched five more airstrikes in support of Iraqi government troops and Sunni tribesmen protecting the Haditha Dam against fighters of the Islamic State group that controls parts of northern and western Iraq. Central Command says that a combination of U.S. attack, fighter...
 
 
boeing-india

Boeing delivers fifth P-8I maritime patrol aircraft to India

  Boeing delivered the fifth P-8I maritime patrol aircraft to India, on schedule, Sept. 9 as part of a contract for eight aircraft to support the Indian Navy’s maritime patrol requirements. The aircraft arrived at Naval ...
 

 

Raytheon receives $109 million contract for Patriot Air and Missile Defense System

Raytheon Comp received a $109 million Engineering Services contract for its Patriot Air and Missile Defense System. The contract, issued by the U.S. Army Aviation and Missile Command, Redstone Arsenal, Ala., is for ongoing technical support and services to the U.S. Army and Foreign Military Sale customers to ensure readiness of their Patriot systems. “Customers...
 
 
boeing-satellite

Boeing receives first order for 502 Phoenix small satellite

EL SEGUNDO, Calif. – Boeing has received its first commercial order for the 502 Phoenix small satellite from HySpecIQ of Washington, D.C. The satellites will carry the commercial remote sensing industry’s first high...
 
 

Northrop Grumman to develop active electronically scanned array technology

Northrop Grumman has been selected by the Defense Advanced Research Projects Agency to develop and demonstrate advanced wideband digital antenna technology for next generation radio frequency sensors using active electronically scanned arrays. The DARPA Microsystems Technology Office awarded Northrop Grumman an $11.9 million contract for phase one of the Arrays on Commercial Timescales (ACT) pr...
 




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>