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.


 
 

 

Headlines March 23, 2015

News: Obama says more troops will stay in Afghanistan next year - President Obama March 24 formally abandoned his pledge to bring U.S. troop levels in Afghanistan down to 5,000 by the end of this year, saying the current force of about 10,000 will remain there into 2016.   Business: U.S. special ops to sole-source 2,000...
 
 

News Briefs March 25, 2015

Pentagon notifying U.S. troops named by alleged IS hackers The Pentagon said March 23 it is notifying 100 U.S. military members that their names and addresses were posted on the Internet by a group calling itself the Islamic State Hacking Division. The group said it was posting the information, including photos of the individuals, to...
 
 
Courtesy photograph

Lockheed Martin acquires high-speed wind tunnel, plans upgrades

Courtesy photograph A RATTLRS cruise-missile inlet undergoes testing at the High Speed Wind Tunnel at Lockheed Martin Missiles and Fire Control in Grand Prairie. Lockheed Martin recently purchased the facility and plans numerou...
 

 
Lockheed Martin photograph by Andrew McMurtrie

Off they go: Three more C-130Js delivered

Lockheed Martin photograph by Andrew McMurtrie March 19, a U.S. Air Force crew took delivery of and ferried an MC-130J Commando II Special Operations tanker aircraft that is assigned to Air Force Special Operations Command’s ...
 
 

Northrop to provide DIRCM for Canadian Chinook fleet

Northrop Grumman has been selected by the Royal Canadian Air Force to provide infrared missile protection on its fleet of CH-147F Chinooks. “Battle-tested in the harshest conditions and in use around the world, Northrop Grumman’s infrared countermeasure systems have been protecting warfighters for more than 50 years,” said Carl Smith, vice president, infrared countermeasures, ...
 
 

UTC Aerospace awarded contract for surface ship sonar domes

UTC Aerospace Systems has received a contract from the Naval Surface Warfare Center – Crane, Indiana, to provide sonar domes for surface combat ships. The five-year indefinite delivery, indefinite quantity contract is valued at up to $39 million and covers deliveries through 2020 to the U.S. Navy and foreign military sales. In addition to the...
 




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>