Commercial aircraft sales boost Boeing 1Q earnings
The Chicago company said Wednesday that firstquarter profit soared 58%, beating analysts? expectations as sales at its commercial airplane division surged. Even its defence business grew, although more slowly. Boeing delivered 137 commercial airplanes in the quarter, winning bragging rights over European rival Airbus, which had 131 deliveries.
Much of the demand came from emerging markets, said chairman and CEO W. James McNerney Jr. Boeing?s backlog rose, partly on orders for a new, more fuel-efficient version of its venerable 737 jetliner. McNerney said the company was focused on profitably boosting commercial airplane production and delivery rates. The company?s stock price rose US$3.93, or 5.4%, to close at US$77.14 on twice the normal trading volume. Before Wednesday, shares had been flat in 2012. Boeing earned US$923 million, or US$1.22 per share, in the first quarter, compared to US$586 million, or 78 cents per share, a year earlier.
Excluding a gain from settling litigation, the company earned US$1.11 per share, beating analysts? expectations of 96 cents. Revenue rose 30%, to US$19.4 billion, topping analysts? forecast of US$18.5 billion. The gains were driven by strength in sales of commercial airplanes, which trumped slow growth in the defence business. Boeing?s 137 deliveries compared with 104 commercial planes delivered in the first quarter last year.
The company?s commercial- plane backlog increased to US$308 billion and had more than 300 orders for the 737 Max jetliner, which is expected to be ready in a few years to compete with the A320neo being developed by Airbus. Both are singleaisle planes designed for short and medium-length flights and are more fuel-efficient than current models. That?s important, with spot prices for jet fuel nearly tripling in the last three years.
In all, Boeing said it now has orders to build more than 4 000 commercial planes. The company did not comment on recent reports that it may be close to winning a big order from United Airlines. United has declined to comment. Boeing added about 11 000 workers last year as it prepared to speed up production of commercial planes, including its new 787 jetliner in South Carolina. It had 171 700 employees at the end of 2011.
Spokesman Chaz Bickers said the company did not expect to increase its workforce in 2012. Maxim Group LLC analyst Ray Neidl said the increase in deliveries showed that Boeing ?is beginning to ring the cash register on its solid order placement.? He predicted that orders will continue to rise for both small and large commercial jetliners.
? Nampa/AP
Much of the demand came from emerging markets, said chairman and CEO W. James McNerney Jr. Boeing?s backlog rose, partly on orders for a new, more fuel-efficient version of its venerable 737 jetliner. McNerney said the company was focused on profitably boosting commercial airplane production and delivery rates. The company?s stock price rose US$3.93, or 5.4%, to close at US$77.14 on twice the normal trading volume. Before Wednesday, shares had been flat in 2012. Boeing earned US$923 million, or US$1.22 per share, in the first quarter, compared to US$586 million, or 78 cents per share, a year earlier.
Excluding a gain from settling litigation, the company earned US$1.11 per share, beating analysts? expectations of 96 cents. Revenue rose 30%, to US$19.4 billion, topping analysts? forecast of US$18.5 billion. The gains were driven by strength in sales of commercial airplanes, which trumped slow growth in the defence business. Boeing?s 137 deliveries compared with 104 commercial planes delivered in the first quarter last year.
The company?s commercial- plane backlog increased to US$308 billion and had more than 300 orders for the 737 Max jetliner, which is expected to be ready in a few years to compete with the A320neo being developed by Airbus. Both are singleaisle planes designed for short and medium-length flights and are more fuel-efficient than current models. That?s important, with spot prices for jet fuel nearly tripling in the last three years.
In all, Boeing said it now has orders to build more than 4 000 commercial planes. The company did not comment on recent reports that it may be close to winning a big order from United Airlines. United has declined to comment. Boeing added about 11 000 workers last year as it prepared to speed up production of commercial planes, including its new 787 jetliner in South Carolina. It had 171 700 employees at the end of 2011.
Spokesman Chaz Bickers said the company did not expect to increase its workforce in 2012. Maxim Group LLC analyst Ray Neidl said the increase in deliveries showed that Boeing ?is beginning to ring the cash register on its solid order placement.? He predicted that orders will continue to rise for both small and large commercial jetliners.
? Nampa/AP
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