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 March 30, 2015

News: Pentagon chief mulls easing military enlistment standards - Defense Secretary Ash Carter is considering easing some military enlistment standards as part of a broader set of initiatives to better attract and keep quality service members and civilians across the Defense Department.   Business: Lockheed pays $2 million to settle government overbilling charges - Lockheed Martin Corpor...
 
 

News Briefs March 30, 2015

Landing mishap for military chopper; two aboard unhurt Two Navy officers were unhurt after their helicopter rolled on its side while landing in the Florida Panhandle. The mishap happened the night of March 27 at a Navy landing site in Pensacola, Fla. The Pensacola News Journal reports a pilot instructor and a student were able...
 
 
Air Force photograph by TSgt. Matt Hecht

Laser-based aircraft countermeasure provides ‘unlimited rounds’ against MANPADS

Air Force photograph by TSgt. Matt Hecht A U.S. Army AH-64 Apache attack helicopter prepares to depart Bagram Air Field, Afghanistan, on Jan 7, 2012. The Apache conducts distributed operations, precision strikes against relocat...
 

 

Navy, Air Force advocate for modernizing combat aviation

Top Navy and Air Force officials today told the House Armed Services subcommittee on tactical air and land forces the president’s budget request for fiscal year 2016 will support modernizing combat aviation programs. Cavy Vice Adm. Paul A. Grosklags, principal military deputy to the assistant secretary of the Navy for research, development and acquisitions; Air...
 
 

Raytheon wins $46 million contract for South Korean Global Hawk ground stations

Raytheon has been awarded a contract valued at up to $45.7 million by Northrop Grumman Aerospace Systems for ground segments in support of four Global Hawk unmanned aircraft systems recently purchased by the Republic of Korea. Under this contract, Raytheon will deliver one building-based and one mobile ground segment to locations in South Korea. Work...
 
 
Air Force photograph by SrA. Victor J. Caputo

McConnell community marks B-29 rollout

Air Force photograph by SrA. Victor J. Caputo A B-29 Superfortress aircraft, named Doc after its nose art, sit on the flightline March 23, 2015, in Wichita, Kan. Doc will be one of two Superfortresses in the world capable of fl...
 




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>