Boeing posts strong profit

File picture: Bobby Yip

File picture: Bobby Yip

Published Jul 23, 2014

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Washington - US aerospace and defense giant Boeing reported Wednesday strong second-quarter earnings lifted by higher commercial aircraft deliveries and raised its profit outlook for the full year.

Boeing's net profit soared 52 percent from a year ago to $1.65 billion, while revenues rose one percent to $22.05 billion.

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

The second-quarter results included a $272 million after-tax charge to reflect additional work on the KC-46A Tanker program for the US Air Force, and a total of $524 million in tax benefits.

“Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow, which supported $1.5 billion in additional share repurchases in the quarter,” said Boeing's chairman and chief executive Jim McNerney in a statement.

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.

“With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse. Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year,” McNerney said.

Investors welcomed the financial results.

Dow component Boeing shares were up 1.7 percent at $132.00 in pre-market trade. - Sapa-AFP

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