Boeing Posts Strong Second Quarter Results Despite Continued Dreamliner Issues Jul 24th 2013, 09:51
Despite continued issues with its vaunted 787 Dreamliner, Boeing Company has posted a 13 percent jump in quarterly profit in its second quarter financial statement. Boeing also raised its full-year revenue forecast to a range of $83 billion to $86 billion from its previous guidance of $82 billion to $85 billion.
The airline manufacture giant reported net income of $1.09 billion, or $1.41 per share. Excluding items, it earned $1.67 per share. Revenue rose 9 percent to $21.8 billion, reflecting higher 787 and 737 deliveries. Commercial aircraft revenue rose 15 percent in the quarter. The company forecast full-year earnings of $5.10 to $5.30 per share, up from its previous estimate of $5.00 to $5.20.
"Strong core operating performance fueled by productivity gains and solid program execution drove higher company earnings and double-digit operating margins in both major businesses during the quarter," said Boeing chairman, president and chief executive officer Jim McNerney. "Commercial Airplanes worked around the clock to resolve the 787 battery issue while also successfully increasing production rates on the 737 and 777 programs. Defense, Space & Security continued to perform exceptionally well, meeting tough affordability goals while investing in future growth."
"Our first priority in the days ahead is to fully restore our customers' 787 fleets to service and resume production deliveries. Our outlook for the year is positive, and our financial and delivery guidance is reaffirmed as we remain focused on the profitable ramp up in commercial airplane production rates, disciplined execution of our development programs, and continued growth in core, adjacent and international defense and space markets."
Boeing’s first quarter results also topped analysts’ predictions, which were announced just as the Federal Aviation Administration approved the company’s Dreamliner lithium battery modifications that were designed to deal with fires or spark issues like the ones that grounded the aircraft in January. The National Transportation Safety Board is still working to determine the causes of those fires. Earlier this month, an Ethiopian Airlines Dreamliner on the runway at Heathrow closed the airport for several hours due to similar issues with the lithium-ion battery.
YOUR COMMENT
