Boeing Posts 6.1% Rise in 3rd-Quarter Net

Boeing Co. reported a 6.1% rise in third-quarter earnings Monday, despite the weak economy, and also won a $2-billion order from Japan Air Lines for its important new 777 jetliner.

The Seattle-based company attributed the improved results to increased commercial aircraft sales, lower losses in its defense and space businesses and a lower effective tax rate.

Net earnings for the three months ended Sept. 30 rose to $401 million, or $1.17 per share, from $378 million, or $1.10 a share, a year ago.

Third-quarter revenue rose 6.8% to $7.66 billion from $7.17 billion a year ago.

The report was close to what financial analysts on Wall Street expected, said Bill Whitlow, research director for the Seattle brokerage firm Gallagher Capital Co.

“The Street was looking for about $1.15,” he said. “Sales were a little better than everyone thought.”

Boeing Chairman Frank Shrontz said he expects Boeing’s Defense and Space Group to become profitable in 1992. The division posted a loss of $418 million in 1990 and a loss of more than $450 million in 1989.

Boeing’s backlog of unfilled orders slipped to $95.9 billion at the end of the quarter from $98.2 billion the prior quarter.

Orders for 58 jets and four commuter planes worth about $4.9 billion were reported in the third quarter, boosting the total for the year to 171 jetliners and 17 commuter planes worth $14.8 billion.

Shrontz acknowledged that some customers have asked the company to reschedule deliveries because of the weak economy. But he said other customers filled those delivery slots.

JAL’s order for 10 of the twin-jet planes, plus options for 10 more, provided a fresh burst of momentum for the 777, which was launched a year ago with an order from United Airlines. Later orders came from JAL’s top rival, All-Nippon Airways, and British Airways.

All four airlines were part of an eight-airline group closely involved in the design of the 777--which will be Boeing’s first fully computer-designed, fly-by-wire aircraft. Fly-by-wire means the aircraft can be flown almost entirely electronically.

“It’s a very positive boost for the company that an airline of that stature (JAL) would go with the 777,” First Boston analyst Peter Aseritis said.

The JAL order and the strong earnings report pleased Wall Street, where Boeing shares rose 75 cents to $49.375 on the New York Stock Exchange.