Rise in deliveries boosts Boeing profit

Boeing Co. posted its best profit in nearly four years Wednesday as higher commercial aircraft deliveries helped the commercial airplane maker earn $1.1 billion in the third quarter.

The results beat Wall Street expectations, but the company cautioned that a six-month delay in the launch of its 787 Dreamliner passenger plane would cut into 2008 revenue and cause it to push 35 aircraft deliveries from 2008 into 2009.

That news sent Boeing shares down during trading Wednesday, and they closed off 69 cents at $94.26. But analysts said they were still pleased at the better-than-expected performance.

“Obviously, it was a very solid quarter driven by the commercial aircraft division, but investors are more focused on the outlook for 2008 and beyond,” said Edward Jones analyst Matt Collins. “The $100-billion question is, when can they deliver the 787?”

Boeing announced this month that it would delay its first delivery of the 787 by six months to November or December 2008 because of problems in assembling the first few planes.

Executives said Wednesday that customers were frustrated by the delay but that orders for the plane continued at a steady clip.

The company got 73 more during the third quarter, bringing total firm orders to 710.

Customers “are not pleased -- and we are obviously disappointed that we are causing them not to be pleased -- but on the other hand, they’re very, very supportive of the product,” Boeing Chief Financial Officer James Bell said.

For the quarter ended Sept. 30, Boeing’s profit rose 61%, or $1.44 a share, up from $694 million, or 89 cents, a year earlier. Revenue rose 12% to $16.5 billion.

On average, analysts surveyed by Thomson Financial had forecast earnings per share of $1.24 on $16 billion in revenue.