Boeing Boosts 2014 Profit Forecast after Solid Quarter

Boeing Boosts 2014 Profit Forecast after Solid Quarter

"With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse," said CEO Jim McNerney.

WASHINGTON -- After a strong second quarter that saw profit soar 52% on higher jetliner deliveries, Boeing (IW 500/13) on Wednesday raised its full-year profit outlook.

Boeing posted net profit of $1.65 billion for the April-June quarter, up from $1.09 billion in the year-ago quarter.

Core earnings per share rose 45%o $2.42, soundly beating analyst estimates of $2.01.

Boeing said it delivered 181 jetliners in the second quarter, an increase of 7.1% from 169 aircraft a year earlier amid solid demand from airlines.

The company raised its 2014 full-year forecast to core earnings per share between $7.90 and $8.10, from $7.15 to $7.35, citing in part its "positive market outlook."

"Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow," said Boeing's CEO Jim McNerney.

"With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse."

During the second quarter, the commercial aircraft division booked 264 net orders, bringing the orders backlog to 5,200 airplanes, valued at a record $377 billion, the company said.

Boeing said it expected to deliver between 715 and 725 jetliners this year.

Revenues at the world's largest aerospace company rose 1% to $22.05 billion.

The commercial aircraft division scored a 5% rise in revenues, to $14.30 billion.

Revenues at the smaller defense, space and security division fell 5.4% to $7.75 billion, reflecting lower U.S. defense spending in the wake of budget cuts.

The second-quarter results included a $272 million after-tax charge to reflect additional work on the KC-46A Tanker program for the U.S. Air Force, and a total of $524 million in tax benefits.

Boeing said it repurchased 11.4 million shares for $1.5 billion during the second quarter and raised its dividend payments by about 50%. It expects to spend the remaining $6.8 billion in the current share buyback program over the next two years.

Copyright Agence France-Presse, 2014

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