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Boeing profit jumps 18%

Boeing profit rose on strong orders from airlines.
Boeing profit rose on strong orders from airlines.
(Paul J. Richards / AFPGetty Images)
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Associated Press

Robust demand for commercial jets and an increased pace of production helped Boeing Co. earn $1.36 billion in the third quarter, up 18% over a year earlier.

On a per-share basis, the Chicago company said it had a profit of $1.86. Adjusted for non-operating costs, earnings came to $2.14 a share, better than the average estimate of $1.95 a share from analysts surveyed by Zacks Investment Research.

Boeing is benefiting from a record jet-buying spree by airlines, driven by cheap financing and a growing number of global fliers. In the last quarter alone, Boeing booked 501 net plane orders, bringing its backlog up to more than 5,500 airplanes valued at a record $430 billion.

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The company is also increasing its production rates, helping to improve its cash flow. During the quarter, Boeing delivered 186 commercial jets, up from 170 during the same period last year.

So far this year, 528 new planes have rolled off Boeing assembly lines, compared with 476 during the first nine months of 2013. The vast majority of that increase came from its popular 737 — a single-aisle plane that is the workhorse of airlines around the globe — and the 787 Dreamliner, a lightweight, fuel-saving aircraft that had numerous delays and hiccups. Boeing 787 customers took delivery of 31 jets in the last three months.

The commercial jet revenue was slightly offset by Boeing’s military arm, which saw its revenue fall 1.7% to $7.91 billion. The company did benefit from doubling deliveries of its P-8 Poseidon jet, a modified version of the 737, to four aircraft. However, fewer government satellite launches pulled down its space systems revenue.

Overall, the aerospace and defense company had revenue of $23.78 billion in the period, also topping Wall Street forecasts. Analysts expected $23.04 billion, according to Zacks.

Looking ahead, the company increased its outlook for full-year core earnings per share — excluding non-operating costs such as pensions — by 20 cents to a range of $8.10 to $8.30 a share. The forecast for revenue remains in a range of $87.5 billion to $90.5 billion.

Boeing shares fell $5.67, or 4.5%, to $121.45.

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