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Sunday, November 19, 2017

Boeing Q3 Profit Soars, Raises 2013 Forecast

Boeing Q3 Profit Soars, Raises 2013 Forecast

Profits from its Commercial Airplanes segment soared 40 percent 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 4,800 airplanes valued at a record $345 billion.

To meet strong demand for the 787 Dreamliner, Boeing said, the 787 production rate 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.

Profits from its smaller Defense, Space & Security segment fell 19 percent, lead by a 48 percent fall in earnings from military aircraft. Boeing said that its military aircraft’s operating margin fell 6.2 percent, in part reflecting one-time charges on the F015 and C-17 programs.

The Defense division backlog was $70 billion, with 38 percent 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.

“Despite the uncertainty of the U.S. defense market, overall our customer-focused business strategies and disciplined execution on our programs are producing the results we expect, and our strong year-to-date performance and positive outlook allow us to increase our 2013 guidance for earnings and operating cash flow,” McNerney said.

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

AFP Photo/Stephen Brashear

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