Boeing 3rd quarter profits boosted by accelerated deliveries

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by JOSHUA FREED / AP Business Writer

NWCN.com

Posted on October 23, 2013 at 6:34 AM

Updated Friday, Oct 25 at 3:17 PM

Boeing Co. said Wednesday that its net income rose 12 percent in the third quarter as deliveries of commercial planes continue to accelerate. It raised its profit guidance for the full year.

The big U.S. plane maker also said it plans to boost production of the 787 amid strong demand for the technologically-advanced plane.

Boeing shares rose $4.44, or 3.6 percent, to $126.92 in premarket trading.

Profits from commercial planes rose 40 percent, offsetting a 19 percent profit drop in Boeing's defense division because of a sharp decline in deliveries of military planes.

Boeing earned $1.16 billion, or $1.51 per share, for the quarter. That was up from about $1 billion, or $1.35 per share, a year earlier.

Not counting pension expenses, Boeing would have earned $1.80 per share. Analysts surveyed by FactSet had been expecting $1.55 per share.

Revenue rose 11 percent to $22.13 billion, above analyst expectations.

The company said it now expects adjusted earnings for the year of $6.50 to $6.65 per share. Analysts had been expecting $6.52. Revenue is projected at $83 billion to $86 billion. Analysts are currently forecasting $84.9 billion.

Boeing expects to deliver 635 to 645 passenger airplanes this year, assuming 60 deliveries of the 787. Boeing delivered 40 787s in the first nine months. Deliveries of the planes were on hold earlier this year when the fleet of 787s was grounded by global aviation authorities because of problems with the plane's batteries. Deliveries resumed in May.

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