Boeing's Profit Rises on Strength of Commercial Unit: Company Raises Earnings Outlook as Aircraft Business Offsets Weaker Defense Profit

By  Tess Stynes

The Wall Street Journal 

Oct. 23, 2013 8:08 a.m. ET


Boeing Co. said its third-quarter earnings rose 12% as strength in its commercial aircraft business offset weaker profit at its defense division.

For the year, the company raised its per-share earnings estimate to $6.50 to $6.65, from its previously increased estimate for a per-share profit of $6.20 to $6.40. Boeing also affirmed its revenue view.

Boeing's commercial aircraft business continued to report increased deliveries, helped by higher production of its 787 Dreamliner, despite glitches that have continued to plague the flagship plane.

The aerospace company still expects to deliver a record 635 to 645 aircraft in 2013 as it works to meet demand for aircraft in Asia, Latin America and the Middle East, as well as replace older fleets in the U.S. and Europe.

In the latest quarter, the commercial aircraft business reported revenue growth of 15% as deliveries increased 14% to 170 planes. Operating earnings climbed 40% on stronger margins.

The defense, space and security division reported revenue improved 3%; however, operating earnings fell 19% as margins weakened.

Boeing reported a profit of $1.16 billion, or $1.51 a share, up from $1.03 billion, or $1.35 a share, a year earlier. Core operating earnings—which adjusts to exclude pension components related to market fluctuations and other items—rose to $1.80 from $1.55. Revenue increased 11% to $22.1 billion.

Analysts polled by Thomson Reuters recently expected per-share earnings of $1.55 and revenue of $21.69 billion.

Operating margin rose to 8.1% from 7.8%.

Through Tuesday's close, the stock is up 63% this year. 

Source: http://online.wsj.com