US aerospace giant Boeing today said that its 2010 earnings more than doubled but fourth-quarter profit slumped amid a sharp fall in commercial aircraft sales.
Boeing's full-year net income was $3.31 billion, up 152% from the 2009 profit of $1.31 billion. The bottom line was helped by a more than doubling of its operating margin from 3.1% to 7.7%, and a one-off boost from a favourable $371 million tax settlement.
Fourth-quarter net income fell 8% from a year ago to $1.16 billion, in line with analyst expectations. Sales for both 2010 and the fourth quarter missed analyst expectations. Full-year sales fell 5.8% to $64.3 billion, while sales in the final three months of the year dropped almost 8% to $16.55 billion.
'Boeing delivered strong operating performance and exceptional cash generation from core production and services businesses in 2010, which helped mitigate the impact of development program challenges,' Jim McNerney, Boeing chairman, president and chief executive, said.
'We're entering 2011 well-positioned for growth, with a large order book, increasing global demand for commercial airplanes, greater clarity around our domestic defense outlook, and significant international defence sales opportunities,' he said.
In Boeing's commercial airplanes division, fourth-quarter revenue fell 11% on lower than expected deliveries of 777 and 747 airplanes. McNerney said the key focus in 2011 would be delivering the new 787 Dreamliner and the 747-8 freight aircraft.
Last week Boeing put off the planned first delivery of the 787 from February to the third quarter due to problems in testing the aircraft. The first 747-8 should be delivered in mid-2011, the company said.
Going into 2011, Boeing said its backlog of contracted orders stood at $304 billion compared to $301.5 billion at the beginning of 2010.
