Industryweek 7083 Boeing 3

Boeing Boosts 2014 Profit Forecast after Solid Quarter

July 23, 2014
"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

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!