Finance Finance News Boeing Q3 profit soars, raises forecasts

Boeing Q3 profit soars, raises forecasts

Boeing says net earnings totalled $US1.16 billion ($A1.20 billion) for the July-September quarter, compared with $US1.03 billion in the same period in 2012
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US aerospace and defence giant Boeing says third-quarter profits have soared 12 per cent from a year ago and it’s raised its 2013 earnings outlook on a pick-up in commercial aircraft deliveries.

Net earnings totalled $US1.16 billion ($A1.20 billion) for the July-September quarter, compared with $US1.03 billion in the same period in 2012, the Chicago-based company said in a statement.

Earnings of $1.51 per share were 12 per cent higher than the year-ago EPS of $1.35.

Third-quarter core operating earnings per share, excluding certain pension expenses, increased 16 per cent to $1.80, well above the Wall Street analysts’ average estimate of $1.55.

Revenues rose 11 per cent to $22.13 billion, reflecting higher commercial aeroplane deliveries. That beat analyst expectations of $21.68 billion.

The company reported a record $415 billion order backlog, including $27 billion net orders booked during the quarter.

“Consistently strong operating performance is driving higher earnings, revenue and cash flow as we deliver on our record backlog and return increased value to shareholders,” Jim McNerney, Boeing’s chairman, president and chief executive, said in the statement.

Profits from its Commercial Airplanes segment soared 40 per cent to $1.62 billion.

The company booked 200 net orders and deliveries accelerated to 170 aircraft from 149 a year ago.

The Commercial Airplanes division reported a backlog of nearly 4800 aeroplanes valued at a record $345 billion.

To meet strong demand for the 787 Dreamliner, production will be increased to 12 per month, from 10, in 2016, with a target of boosting the rate to 14 per month before the end of the decade, Boeing said.

Profits from its smaller Defense, Space & Security segment fell 19 per cent, led by a 48 per cent fall in earnings from military aircraft.

The Defense division backlog was $70 billion, with 38 per cent of that representing orders from international customers.

Boeing raised its 2013 core earnings outlook to between $6.50 and $6.65 per share, from the prior estimate of $6.20 to $6.40.

Shares in Dow component Boeing were up 3.3 per cent at $126.57 in pre-market trading on the New York Stock Exchange.