Business

October 23, 2013

Accelerating deliveries drive Boeing third quarter profits

Joshua Freed
Associated Press

Faster airplane production is going straight to Boeing’s bottom line.

Third-quarter net income rose 12 percent as the company delivered planes to customers at a quicker pace. It has already sped up the assembly of two of its planes ó the 737 and 777 ó and Oct. 23 announced plans to boost production of its new 787 Dreamliner, too.

Boeing raised its profit guidance for the full year. Shares rose $5.29, or 4.3 percent, to $127.77 in afternoon trading.

Profits from commercial planes rose 40 percent, offsetting a 19 percent profit drop in Boeing’s defense division because of a sharp decline in deliveries of military planes.

Boeing earned $1.16 billion, or $1.51 per share, for the quarter. That was up from about $1 billion, or $1.35 per share, a year earlier.

Not counting fluctuations in pension expenses, Boeing would have earned $1.80 per share. Analysts surveyed by FactSet had been expecting $1.55 per share.

Revenue rose 11 percent to $22.13 billion, also topping analyst expectations.

Boeing now expects adjusted earnings for the year of $6.50 to $6.65 per share. Analysts had been expecting $6.52. Revenue is projected at $83 billion to $86 billion. Analysts are currently forecasting $84.9 billion.

Boeing expects to deliver 635 to 645 passenger airplanes this year, including at least 60 787s.

The 787 was first delivered in 2011. It’s a long-range, fuel-efficient plane that has turned out to be very popular with airlines. It has sold 131 of the planes this year, even after battery problems grounded them for a while. Deliveries resumed in May.

Boeing is still working to fix the reliability of the 787. CEO Jim McNerney said on a conference call that its “dispatch reliability” ó meaning the plane’s readiness for a flight ó is at 97 percent, but needs to be better. “We’re not pleased yet,” he said.

Boeing is boosting production to get through its backlog of 890 of the 787s that have been ordered but not delivered. By year end, it expects to be building 10 787s every month. On Wednesday, Boeing said it plans to go up to 12 per month in 2016, and it’s aiming to get to 14 per month by the end of this decade.




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


 
 

 
LM-AEHF

Ingenuity drives Lockheed’s AEHF program to production milestone early

Lockheed Martin has successfully integrated the propulsion core and payload module for the fourth Advanced Extremely High Frequency (AEHF) satellite nearly five months ahead of schedule. Reaching this critical milestone early a...
 
 

First all-electric propulsion satellites send first on-orbit signals

Two Boeing 702SP (small platform) satellites, the first all-electric propulsion satellites to launch, have sent initial signals from space, marking the first step toward ABS, based in Bermuda, and Eutelsat, based in Paris, being able to provide enhanced communication services to their customers. Whatís more, the satellites were launched as a conjoined stack on a...
 
 

GA-ASI, Sener team to offer Predator B to Spain

General Atomics Aeronautical Systems, Inc. and SENER, a leading Spanish engineering company, announced March 2 that they have signed a teaming agreement that promotes the use of the multi-mission Predator B® RPA to support Spain’s airborne surveillance and reconnaissance requirements.  GAASI is a leading manufacturer of Remotely Piloted Aircraft systems, radars, and electro-optic and relate...
 

 
raytheon-satellite

Raytheon’s ‘Blue Marble’ imaging sensor delivered on schedule

Raytheon has delivered a second Visible Infrared Imaging Radiometer Suite instrument to support the National Oceanic and Atmospheric Administration’s Joint Polar Satellite System mission. The second VIIRS unit will fly ab...
 
 

Airbus says net profit soared in 2014

Airbus says its net profit soared 59 percent last year as a record-high number of jet deliveries helped offset a 551 million euros end-of-year charge against its delayed A400M military transporter program. The European jet maker said Feb. 27 it made a 2.34-billion-euros ($2.62 billion) net profit in 2014, up from 1.47 billion euros in...
 
 

Lockheed Martin Australia to deliver modern, affordable C-130J training solutions to RAAF

The Royal Australian Air Force has awarded Lockheed Martin Australia a contract to supply a modern C-130J-30 Virtual Maintenance Trainer and a Multi-Function Training Aid to support maintenance and aircrew training at RAAF Base Richmond. Through this major upgrade, the RAAF will have a standardized curriculum tailored for its operations and based on decades of...
 




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>