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 15, 2014

News: Navy identifies pilot presumed dead in crash - A Navy fighter pilot presumed dead after two fighter jets crashed in the far western Pacific Ocean has been identified.   Business: Boeing eyes 737-700 solution for new JSTARS - Boeing is officially planning a variant of its 737-700 commercial jetliner as a competitor for the Air Force’s...
 
 

News Briefs September 15, 2014

Australia contributing planes for anti-IS campaign Australia is preparing to contribute 600 troops and up to 10 military aircraft to the increasingly aggressive campaign against the Islamic State extremists in Syria and Iraq, Prime Minister Tony Abbott said Sept. 14. Abbott said Australia was responding to a formal request from the United States for specific...
 
 
Courtesy graphic

Lockheed Martin conducts flight tests of aircraft laser turret for DARPA

AFRL photograph The Aero-adaptive Aero-optic Beam Control turret that Lockheed Martin is developing for the Defense Advanced Research Projects Agency and the Air Force Research Laboratory has completed initial flight testing. T...
 

 

Lockheed Martin advances live, virtual, constructive training in flight test

https://www.youtube.com/watch?feature=player_embedded&v=jvXmOW8L3mU Lockheed Martin successfully tested a new solution for integrated live, virtual and constructive training during a flight demonstration at the company’s Aeronautics facility in Fort Worth, Texas. During the flight test, a pilot flying in a live F-16 engaged in a synthetic training exercise with a pilot flying as wing...
 
 
Image courtesy of NASA/JPL-Caltech/Univ. of Arizona

NASA’s Mars Curiosity rover arrives at Martian mountain

NASA’s Mars Curiosity rover has reached the Red Planet’s Mount Sharp, a Mount-Rainier-size mountain at the center of the vast Gale Crater and the rover mission’s long-term prime destination. “Curiosity n...
 
 

Raytheon begins full rate production on TALON Laser Guided Rockets

Under a $117 million contract awarded to Raytheon, Raytheon Missile Systems has begun production of the TALON Laser Guided Rocket. In 2013, the Armed Forces General Headquarters of the United Arab Emirates awarded Tawazun a contract to procure the TALON Laser Guided Rocket. “Full rate production of the TALON LGR is a significant milestone for...
 




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>