Boeing Profit Jumps 38% as Orders Grow
Finally good news from the economical front: ‘Boeing Co., the world’s second biggest commercial airplane manufacturer, said Wednesday that it earned $1.2 billion in the first quarter, a 38 percent increase from a year ago as its backlog of orders grew to a new record high.’
The earnings beat Wall Street estimates while it sales missed expectations. Its shares rose more than 2 percent in premarket trading.
The aerospace company said its profit amounted to $1.62 per share for the quarter ending March 31. That compares with $877 million, or $1.13 per share, a year earlier.
Revenue rose 4 percent to $16 billion from $15.37 billion a year ago.
On average, analysts surveyed by Thomson Financial expected Boeing to earn $1.35 per share on $16.5 billion in revenue.
”We’re off to a good start in what we expect to be another strong year of financial performance for Boeing,” Chairman and Chief Executive Jim McNerney said in a statement.
Especially the company’s commercial airplane segment is doing well. It saw it profits growing 39 percent to $983 million in the January-through-March quarter.
The defense unit of the company also does well, albeit less well; its profit grew 10%.
Next year promises to be another great year for Boeing: ‘the company predicted it will earn between $6.80 and $7.00 per share and is on track to deliver between 500 and 505 planes, including 25 of its thrice-delayed 787 jetliner.’
