Business

April 23, 2014

Faster production brings Boeing $965 million first quarter profit

Scott Mayerowitz
Associated Press

Boeing’s increased rate of commercial jet manufacturing is starting to pay off for shareholders.

In the first three months of this year, 161 new airplanes rolled off the company’s assembly lines – more jets than the same period last year. That increased rate contributed to a $965 million profit for Chicago-based Boeing post in the first quarter.

The net income was actually down 12.7 percent from last year’s $1.1 billion first quarter profit, but that is because Boeing took a $330 million accounting write-off related to changes in its retirement plans. The company also noted that its 2013 earnings were inflated by a one-time research and development tax credit.

Net income per share dropped to $1.28 per share from $1.44 during last year’s first quarter. But adjusted to exclude the write-off, earnings were $1.76 per share, beating the estimate of $1.56 per share from Wall Street analysts surveyed by FactSet. Shares rose $2.38, or 1.9 percent, to $129.93 in midday trading.

The company reported $20.47 billion in revenue, more than the $20.15 billion expected by Wall Street. That’s up 8 percent from the $18.9 billion in revenue during the same period last year.

Revenue at Boeing’s commercial plane unit rose 19 percent. The business grew thanks to increased production rates on its 737 manufacturing lines. In April, the 737 program reached a production rate of 42 per month. Boeing hopes to increase that to 47 airplanes a month in 2017 to help feed a worldwide demand for the narrow-body jet.

The company’s much delayed 787 Dreamliner also showed progress, reaching a production rate of 10 per month – although only 18 were delivered during the first quarter. Still, that’s a major improvement over last year, when only one Dreamliner was delivered due to a worldwide grounding of the fleet over concerns about its lithium-ion batteries catching on fire.

Boeing has backlog of 5,100 airplanes on order with a combined book value of $374 billion.

On the defense side, revenue fell 6 percent and Boeing lowered its full year revenue guidance for military aircraft to $14.2 billion, down from $15 billion. Its global support and services revenue is expected to climb, however, from $7.8 billion to $8.6 billion. Both changes reflect a realignment within the defense unit.

Boeing also repurchased 19.4 million shares for $2.5 billion during the first quarter.




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


 
 

 

Headlines October 17, 2014

News: Turkey OK’s American drones to fight ISIS - Turkey is now allowing the U.S. to launch unmanned aircraft to fly over Syria. But so far, traditional warplanes are out of the question. New Ingalls boss focusing on cost performance, agility - Brian Cuccias has been in the Gulf Coast shipbuilding business for 35 years, working for...
 
 

News Briefs October 17, 2014

AM General laying off 60 from Indiana factory A company spokesman says AM General is laying off about 60 workers from the northern Indiana factory where it builds military vehicles. Company spokesman Jeff Adams says the layoffs are being made because of production schedule changes at its Military Assembly Plant in Mishawaka. Adams tells the...
 
 
Image courtesy of NASA, J. Lotz, (STScI

NASA’s Hubble finds extremely distant galaxy through cosmic magnifying glass

Image courtesy of NASA, J. Lotz, (STScI The mammoth galaxy cluster Abell 2744 is so massive that its powerful gravity bends the light from galaxies far behind it, making these otherwise unseen background objects appear larger a...
 

 
Northrop Grumman photograph by Alan Radecki

Second Northrop Grumman-built Triton UAS completes first flight

Northrop Grumman photograph by Alan Radecki The second MQ-4C Triton, built by Northrop Grumman for the U.S. Navy, successfully completed its first flight Oct. 15 PALMDALE, Calif. – The U.S. Navy’s second MQ-4C Triton un...
 
 
NASA photograph

NASA TV to air Russian spacewalk from International Space Station

NASA photograph Expedition 41 Commander Max Suraev and Flight Engineer Alexander Samokutyaev of the Russian Federal Space Agency will don Orlan spacesuits and step outside the International Space Station Oct. 22, to perform wor...
 
 
Raytheon photograph

Poland’s PIT-RADWAR signs letter of intent with Raytheon

Raytheon photograph Mike Shaughnessy, Vice President of Supply Chain, Raytheon Integrated Defense Systems and Jerzy Milosz, Member of Board and Director of R&D, PIT-RADWAR sign a letter of intent to explore further partners...
 




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>