Boeing boosts 2014 profit forecast after solid quarter

Wednesday 23 July 2014 14.49
Boeing posted net profit of $1.65 billion for the April-June quarter
Boeing posted net profit of $1.65 billion for the April-June quarter

US aerospace and defence giant Boeing raised its full-year profit outlook after a strong second quarter that saw profit soar 52% on higher jetliner deliveries.

Boeing posted net profit of $1.65 billion for the April-June quarter, up from $1.09 billion in the year-ago quarter.

Core earnings per share rose 45% to $2.42, soundly beating analyst estimates of $2.01.

Boeing said it delivered 181 jetliners in the second quarter, an increase of 7.1% from 169 aircraft a year earlier amid solid demand from airlines.

The Chicago-based company raised its 2014 full-year forecast to core earnings per share between $7.90 and $8.10, from $7.15 to $7.35, citing in part its "positive market outlook."

"Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow," said Boeing's chairman and chief executive Jim McNerney in a statement.

During the second quarter, the commercial aircraft division booked 264 net orders, bringing the orders backlog to 5,200 airplanes, valued at a record $377 billion, the company said.

Boeing said it expected to deliver between 715 and 725 jetliners this year.

Revenues at the world's largest aerospace company rose 1% to $22.05 billion.

Investors welcomed the financial results. Dow component Boeing shares were up 0.2% at $129.97 in pre-market trade.

Boeing said it repurchased 11.4 million shares for $1.5 billion during the second quarter and raised its dividend payments by about 50%. It expects to spend the remaining $6.8 billion in the current share buyback program over the next two years.

Keywords: boeing