Boeing beats Q2 profit estimates, raises forecast
SEATTLE, July 25 – Boeing Co reported a greater-than-expected increase in second-quarter profit and raised its full-year earnings forecast today as rising airplane deliveries offset higher pension costs.
The planemaker and defence contractor is rapidly ramping up production to meet rising demand for new, fuel-efficient planes and is set to overtake rival Airbus in plane deliveries this year.
Its shares rose 2.7 per cent in premarket trading, edging into positive territory for the year.
Chicago-based Boeing said profit increased to US$967 million (RM3.07 billion), or US$1.27 per share, from US$941 million, or US$1.25 per share, in the year-ago quarter.
Wall Street expected earnings of US$1.12 a share, on average, according to Thomson Reuters I/B/E/S.
Sales jumped 21 per cent to US$20 billion, boosted by commercial aircraft sales, topping analysts’ average estimate of US$19.4 billion.
For the full year, Boeing forecast earnings of US$4.40 to US$4.60 per share, up from a range of US$4.15 to US$4.35 per share, based on better expectation for both commercial and defence sales. That is in line with the US$4.56 per share analysts’ expect.
The company stood by its forecast to deliver a record 585 to 600 commercial planes this year, a key number for profit as most of the payments from a customer come on delivery.
Airbus, which has led the market in deliveries for the past few years, is targeting 570 commercial deliveries for 2012. Its parent EADS is due to report its own earnings on Friday.
Boeing shares rose 2.7 per cent to US$74 in premarket trading, after closing at US$72.03 on the New York Stock Exchange yesterday.
At yesterday’s close, the shares were down almost 2 per cent so far this year, compared to a 2 per cent gain in the Standard & Poor’s aerospace index and 6 per cent gain for the Standard & Poor’s 500 index. – Reuters