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 | Apr-24-2008Boeing quarterly profit climbs 38%(topic overview) CONTENTS:
- Operating profits for Boeing's defense unit rose 10 percent to $860 million while revenue slipped 2 percent to $7.6 billion. (More...)
- A significant portion of the backlog -- approximately $154 billion -- comes from Boeing'''s 787 program. (More...)
- Boeing's 2008 revenue guidance is unchanged at between $67 billion and $68 billion. (More...)
- Boeing's profit margins were helped in part because research and development expenditures dropped $130 million, to $869 million. (More...)
- Pressured by high fuel costs, airlines are eager to add the plane, which Boeing says will be up to 20% more fuel efficient than current models. (More...)
- Only Lufthansa among major airlines has ordered the passenger version called the 747 Intercontinental. (More...)
- Delta Air Lines Inc., the nations third-largest carrier, reported a steep loss of $6.39 billion on Wednesday, on soaring fuel prices and a steep decline in the companys market value. (More...)
- Segment sales rose 8.0%, to $8.2 billion, and were helped by higher services volume. (More...)
- The company said the earnings came on revenues of almost 16 billion dollars, up 4.1 per cent. (More...)
- The results, announced Wednesday by the Chicago-based aerospace and defense company, sent Boeing shares to a two-month high. (More...)
- The fuel-efficient plane has been beset with delays the company attributed to outside contractors and won't be delivered to customers until late 2009. (More...)
- Boeing is talking with customers about "appropriate mitigation'' for the delays, Chief Financial Officer James Bell said on the call today. (More...)
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Operating profits for Boeing's defense unit rose 10 percent to $860 million while revenue slipped 2 percent to $7.6 billion. Boeing said its total backlog reached a new record of $346 billion. The company also reaffirmed its 2008 guidance, saying it expects to earn between $5.70 and $5.85 this year while delivering between 475 and 480 airplanes. Next year, the company predicted it will earn between a better-than-expected $6.80 and $7.00 per share and said it and is on track to deliver between 500 and 505 planes, including 25 of its thrice-delayed 787 jetliners. [1] Boeing Commercial Airplanes now has a backlog of $271 billion in airplane orders. Boeing said that it is continuing to address "slower-than-expected completion" of work on its 787 plane and affirmed the delay announced earlier this month: The first flight of the 787 will take place in the fourth quarter of this year and the first delivery of the plane will occur in the third quarter of next year. For fiscal year 2008, the company reaffirmed its earnings-per-share guidance of between $5.70 and $5.85 and for fiscal 2009, said it expects between $6.80 and $7 per share, "on strong production performance and decreases in research and development and pension expense."[2] Boeing said operating cash flow more than doubled to $1.9 billion, as a result of robust operating earnings and higher orders for commercial airplanes. The total company backlog at quarter-end reached $346.0 billion, up 32% in the last year, on commercial plane growth and multi-year orders in its defense segment. The aircraft manufacturer said its outlook reflected expectations for strong business performance, increasing commercial airplane deliveries, decreasing investment in new airplane development and company-wide productivity gains. Boeing reaffirmed its 2008 guidance for earnings between $5.70 and $5.85, and sales of between $67.0 billion and $68.0 billion.[3] CHICAGO, April 23, 2008 /PRNewswire-FirstCall via COMTEX/ -- The Boeing Company's (NYSE: BA) first-quarter 2008 earnings per share increased 43 percent to $1.62 as net income rose 38 percent to $1.2 billion and operating margin rose to 11.3 percent, driven by solid overall execution in both its commercial airplane and defense businesses as well as lower unallocated costs (Table 1). Boeing's quarterly revenue rose 4 percent to $16.0 billion while its operating cash flow more than doubled to $1.9 billion reflecting the strong operating earnings and higher commercial airplane orders. Boeing reaffirmed its 2008 earnings per share guidance at between $5.70 and $5.85.[4] The company said operating cash flow more than doubled in the period to $1.9 billion because of strong operating earnings and higher commercial airplane orders. Boeing also reaffirmed its outlook for earnings of $5.70 to $5.85 a share for 2008 and said it expects a profit of $6.80 to $7 a share in 2009, citing expectations for strong production program performance and decreases in research and development and pension expense.[5]
'We're off to a good start in what we expect to be another strong year of financial performance at Boeing,' said Jim McNerney, Boeing's chief executive. The company reaffirmed its 2008 earnings estimate and forecast a 2009 earnings per share increase of nearly 20 percent, despite delays to the company's 787 Dreamliner jet program. Boeing said that progress on the Dreamliner continues on the revised schedule the company provided earlier this month. The Chicago-based jet maker has pushed back the first delivery of its carbon fiber composite 787 until the third quarter of 2009 from its original delivery date of next month. Overall, Boeing intends to deliver 475 to 480 commercial airplanes this year and between 500 and 505 in 2009, including 25 Dreamliners.[6] Boeing's order backlog at quarter-end reached a record 346 billion dollars, up 32 percent in the last year, with growth in the quarter driven by commercial airplane and the V-22, a tiltrotor aircraft for the armed forces that takes off and lands like a helicopter and then flies like a conventional plane. The company has said its finances would see little impact from the delays in the 787 program. Boeing revised the first flight and schedule plans for its long-awaited 787 Dreamliner on April 9. The company now expects the first flight to occur in the fourth quarter of this year, rather than the end of the second quarter, and is planning its first delivery for the third quarter of 2009.[7] The company said total backlog stood at $346 billion at quarter's end, up 32% from the same time last year, with growth driven by commercial airplane and V-22 multi-year orders. Boeing boosted its total research and development spending forecast to between $3.6 billion and $3.8 billion from a prior projection of between $3.2 billion to $3.4 billion, citing the new schedule for the new 787 launch schedule and additional 747-8 costs. Boeing revised the first flight and schedule plans for its long-awaited 787 Dreamliner on April 9. The company now expects the first flight to occur in the fourth quarter of this year, rather than the end of the second quarter, and it's planning its first delivery for the third quarter of 2009.[5]
NEW YORK - Boeing Co., the worlds second biggest commercial airplane manufacturer, said Wednesday its first quarter profit was better expected at $1.2 billion, a 38 per percent gain from last year as it increased deliveries to airlines and built a record backlog of orders. Get stories by e-mail on this topic.[8] CHICAGO (AP) — Boeing Co. says it earned $1.2 billion in the first quarter, a 38 percent increase from the same period last year as its backlog of orders grew to a new record of $346 billion. The airplane maker said Wednesday its profit was $1.62 per share for the quarter ending March 31. That compares with $877 million, or $1.13 cents per share, a year earlier.[9]
CHICAGO (AP) — Boeing Co., the world's second biggest commercial airplane manufacturer, said Wednesday that it earned a better-than-expected $1.2 billion in the first quarter, a 38 percent increase from a year ago as its backlog of orders grew to a record high. While the earnings beat Wall Street estimates, its sales missed expectations.[10]
"With the huge backlog of orders Boeing has and its plans to ramp up production, it can increase earnings for the next three years,'' said Richard Tortoriello, a Standard & Poor's analyst in New York. "And once they get the 787 going, it's going to be a very successful product.'' Boeing may say 2009 net income will increase to $6.87 a share from $5.93 this year, based on the average estimates of 19 analysts surveyed by Bloomberg. Earnings in this year's first quarter may have risen to $1.02 billion, or $1.35 a share, from $877 million, or $1.13, a year earlier, according to the survey.[11]
Analysts, on average, expect earnings of $5.93 per share on revenues of $68.95 billion for the year. The company also maintained its outlook for operating cash flow for the year at greater than $2.5 billion. Boeing raised its total R&D; forecast for 2008 to a range between $3.6 billion and $3.8 billion from its prior forecast in a range between $3.2 billion and $3.4 billion, due to the new 787 schedule announced earlier this month and additional 747-8 costs.[12] Unallocated expense declined to $55 million from $199 million a year ago, driven by lower deferred compensation and pension expense. For fiscal year 2008, Boeing reaffirmed its outlook for earnings per share in a range of $5.70-$5.85. The company also reiterated its outlook for revenue between $67 billion and $68 billion for the year.[12] Author: 123jump.com Staff 123jump.com Last Update: 2:17 PM EDT April 23 2008 Boeing first quarter revenue rose 4% to $16 billion, earnings increased 38% to $1.2 billion or earnings per share increased to $1.62 or $1.2 billion from $1.13 or $877 million.[13] The company reports double digit increases in income and growth for the first quarter. In a report released this morning, the company states net income rose 38 percent or $1.2 billion, while earnings per share increased 43 percent or $1.62 per share.[14]
Boeing shares rose more than 5 percent in morning 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.[10] On a per-share basis, profits climbed 43 percent -- to $1.62 from $1.13. The increase per-share is greater because Boeing has been buying back shares; the company spent $1.2 billion to acquire 15.6 million of its shares in the quarter.[15] Total company backlog at the end of the quarter surged 32% to a record $346 billion, with growth in the quarter driven by commercial airplane and V-22 multi-year orders. Boeing spent $1.2 billion to acquire 15.6 million of its shares in the quarter, enabled by the recent $7 billion share repurchase authorization. The company contributed $506 million to its pension plans in the quarter.[12] The company's total backlog was raised to $346 billion, up 32 percent, driven by commercial airplane and V-22 multi-year orders. Earlier this month, Boeing pushed back the expected first delivery of the 787 Dreamliner for the third time -- this time by about six months to the third quarter of 2009.[16] Revenues were up 4 percent, to $16 billion. It would seem, then, that the company is operating much more efficiently. Boeing says its commercial airplanes R&D; spending actually fell (to $633 million from $788 million), in spite of the continued delays on the 787. In spite of those ongoing delays, Boeing took another 75 orders for Dreamliners in the quarter, pushing the total sold to date to 892, which is an astonishing number in the historical context.[15]
Operating profits for Boeings defense unit rose 10 percent to $860 million while revenue slipped 2 percent to $7.6 billion. The aerospace company said its total backlog reached a new record of $346 billion.[8] Revenue in Boeing's commercial-airplanes business rose 8 percent as earnings jumped 39 percent. The company received 289 gross orders in the quarter, raising its contractual backlog to $271 billion.[16]
April 22 (Bloomberg) -- Boeing Co. may try to reassure investors tomorrow that profit will rise next year even after a third delay in the aircraft maker's 787 Dreamliner and the unexpected loss of a $35 billion military contract. Chief Executive Officer James McNerney postponed his 2009 forecast until tomorrow's first-quarter earnings report to give Boeing time to review the financial effects of shoving the 787's delivery into next year's third quarter, 14 months late. A dozen analysts have lowered their 2009 profit predictions since the latest delay on the Dreamliner, part of Boeing's effort to reclaim the title of world's largest planemaker from Airbus SAS. McNerney may make the case that airlines' worldwide appetite for newer, more fuel-efficient aircraft already made by the Chicago-based company will boost profit and sales.[11] "The weak dollar combined with really having a superior product from a fuel standpoint should allow Boeing to gain market share over the next five years.'' Profit for 2009 will be $6.80 to $7 a share on sales of as much as $73 billion, Boeing said in its first forecast for next year. Analysts had predicted profit would rise to $6.87 a share from about $5.93 this year, even after a dozen estimates were cut since this month's announcement of a third 787 Dreamliner delay.[17] We think the stock could go back above US$100 over the next year." Profit for 2009 will be US$6.80 to US$7 a share on sales of as much as US$73-billion, Boeing said in its first forecast for next year. Analysts had predicted profit would rise to US$6.87 a share from about US$5.93 this year, even after a dozen estimates were cut since this month's announcement of a third Dreamliner delay.[18]
Boeing is also the second-largest U.S. defense contractor, trailing Lockheed Martin Corp. Boeing said today it expects to deliver 500 to 505 airliners in 2009, up from as many as 480 this year, and that the figure will grow again in 2010. Boeing reiterated its Jan. 30 forecast for 2008 earnings of $5.70 to $5.85 a share on sales of $67 billion to $68 billion.[17] Boeing announced record first-quarter earnings of $1.21 billion, up 38% from $877 million reported in the year-ago period, on a 4% increase in sales to $15.99 billion. Despite hiccups in the 787 program, Chairman, President and CEO Jim McNerney said the company was "off to a good start" in what he expects to be "another strong year."[19] Wall Street analysts had a consensus revenue estimate of $16.52 billion for the quarter. Among the company's peers, Bethesda, Maryland-based Lockheed Martin Corp. (LMT) announced a 5.8% rise in net earnings for the first quarter to $730 million from $690 million a year ago, as slightly lower net sales at its Aeronautics segment were offset by increased sales at its space systems business.[12] Analysts expect the company to report earnings of $0.63 per share on revenues of $7.70 billion for the quarter.[12] Analysts polled by Thomson Financial Network expected earnings of $1.35 per share and revenues of $16.52 billion. The aerospace giant (NYSE: BA) said its Seattle-based Commercial Airplanes division reported revenues of $8.16 billion, up from $7.55 billion in 2007.[2] On average, analysts surveyed by Thomson Financial expected the world's No. 2 commercial airplane maker to earn $1.35 per share on $16.5 billion in revenue. The Chicago-based aerospace company also reaffirmed its 2008 guidance.[9]
Annual capital expenditures are still expected to be about $1.8 billion in 2008. Boeing maintained its outlook to deliver Commercial Airplanes between 475 and 480 in 2008, and noted that it is sold out. The company reiterated its outlook for BCA revenue between $34.5 billion to $35 billion, and operating margin guidance of approximately 11.5%.[12] Boeing'''s margin was helped by a 4 percent gain in revenues, to $15.9 billion from $15.3 billion,''coupled with''a 13 percent cut in research and development spending. The company'''s commercial airplane division accounted for 51 percent of revenues; its defense sector brought in 47 percent.[20]
Boeing's first quarter 2008 net income rose 38 percent to $1.2 billion, thanks in part to a solid performance by its commercial airplane division, the company said Wednesday.[21] Revenue rose 4 percent to $16 billion from $15.37 billion a year ago. "As our numbers from the quarter attest, we are off to a strong start in what we believe will be another year of improving financial performance for this company," said Boeing Chairman and Chief Executive Jim McNerney.[1] Contractual backlog rose to a record $271 billion. Boeing reaffirmed its most recent 787 schedule guidance ( ATWOnline, April 10), with McNerney telling a global webcast that its latest schedule is "an achievable, high-confidence plan.We've taken a more conservative approach to setting our milestones, based on our experience to date." BCA expects to deliver 475-480 commercial aircraft this year and report revenue of $34.5-$35 billion.[19] Boeing Commercial Airplanes' first-quarter revenues rose to $8.2 billion on an 8 percent increase in airplane deliveries and higher services volume, partially offset by lower aircraft trading volume, it said.[21] Boeing Commercial Airplanes segment, or BCA, generated revenues of $8.16 billion, up from $7.56 billion in the prior-year period, buoyed by an 8% increase in airplane deliveries and higher services volume, partially offset by lower aircraft trading volume.[12]
Boeing Commercial Airplanes' first-quarter revenue rose 8% to $8.2 billion.[19]
Total company backlog at quarter-end reached a record $346 billion, up 32 percent in the last year, with growth in the quarter driven by commercial airplane and V-22 multi-year orders.[13] The company said total backlog reached a record $346 million, up 32% from last year, on orders for commercial airplanes and the V-22 military jet. It said progress of its delayed release of the 787 Dreamliner remains on its new schedule unveiled earlier this month.[22]
The company delivered 115 commercial aircraft in the first quarter of 2008, nine more than it did during the same period last year. The value of its total backlog of orders increased to $346 billion.[20] Boeing's total company backlog of unfilled orders rose 32 percent compared to last year to $346 billion.[6] The strike price is the amount at which an option can be exercised. That much of an advance or decline is 1.3 times the average one-day move after the last eight quarterly reports, according to Bloomberg data. It indicates traders expect a move of at least that amount, or 4.3 percent, to break even on the position before the contracts expire on May 16. Boeing is working off a record $255 billion backlog after getting the most orders in its history last year and delivering more planes than in any year since the 2001 terrorist attacks disrupted the U.S. airline industry.[11] McNerney noted that roughly 80 percent of the orders in Boeing's commercial jet backlog - which stands at a record $271 million, close to six years' worth of production - are going to buyers outside the United States. Their markets have been less affected by the U.S. economic turmoil - and their orders have guaranteed financing through the U.S. Export-Import Bank, he said. That's a sharp contract from 2001, when the combination of a U.S. recession, the SARS epidemic in Asia and the September 11th terror attacks caused a sharp decline.[23]
Only 11 percent of the order backlog is from U.S. airlines, Chief Executive Officer James McNerney said on a conference call. McNerney had held back his annual forecast until today to learn more about the effects of delays on the 787, which is at least 14 months late and won't enter service until next year's third quarter. Boeing is counting on the aircraft, whose light carbon fibers improve fuel efficiency, to help regain the No. 1 planemaker post from Toulouse, France-based Airbus, which has also struggled with delays for its new A380 superjumbo jet due to faulty wiring.[17] ". With many of the early challenges on the 787 behind us, we can see our way to getting electrical power on the airplane by the end of June, then flying later this year, and beginning deliveries of this game-changing new airplane next year." Boeing's bigger rival in commercial aircraft is Europe's Airbus, which announced this week that it was raising prices because of the devalued U.S. dollar and high cost of metals. Boeing executives said the company was well-positioned to weather the souring economy, thanks to its diverse portfolio of customers, especially in the Middle East and Asia. Executives predicted domestic airlines would invest in new, fuel-efficient planes to help them cope with rising fuel costs, rather than delay purchases. "I think the new oil reality is a tough one for them to deal with," McNerney said.[1] Then McNerney said, Boeing's backlog was dominated by U.S. airlines, which canceled orders for some airplanes and pushed back delivery dates on more, resulting in a 60-percent drop in deliveries. That drop led Boeing to lay off 30,000 Puget Sound workers. This time, McNerney said, there's such high demand for Boeing jets that if anyone cancels or delays an order, there's another customer eager to take their spot in the delivery line. With fuel prices continuing at unprecedented prices, that will only increase the incentive for U.S. airlines to start buying new planes to replace their old gas-guzzlers. McNerney said Boeing's sales teams are in talks with most of them, and he expects orders within 12 to 18 months.[23]
A major economic downturn for U.S. domestic airlines will likely have only a minimal effect on Boeing's order book, McNerney said. Most of the company's airliner backlog is due to foreign airline orders financed through the U.S. Export-Import Bank, he said. Order cancellations and deferrals could amount to six or seven percent of Boeing's orders, but with a five-year-backlog, those reversals will have little effect on the company's production. Despite three delays and parts shortages with its new 787 program, Boeing won't repudiate its new production and design scheme that outsources responsibility to major partner companies around the world, the Boeing CEO said.[24]
Boeing's quarterly revenue rose four percent to 16.0 billion dollars. The U.S. aerospace giant, which has been plagued by delays of its new 787 Dreamliner aircraft, reaffirmed its 2008 earnings guidance at between 5.70 and 5.85 dollars per share.[7] Quarterly revenue increased 4% from a year ago. The company reiterated its earnings and revenue outlook for fiscal year 2008 and forecasts earnings per share for fiscal year 2009 to grow about 20% from the preceding year. The results come on the heels of Boeing's announcement earlier this month of a further delay in the delivery of its first 787-Dreamliner plane. The company pushed back the delivery date of its much-hyped Dreamliner aircraft for the third time by about four months to late 2009, citing continuing supply and design snags for the delay.[12]
For 2009, the company expects revenues between $72 billion and $73 billion. Boeing reaffirmed its guidance for 2008 between $5.70 and $5.85 per share and for 2009 between $6.80 and $7.00.[13] Total company backlog at quarter-end increased 32% to a record of $346 billion. Boeing reaffirmed its guidance for 2008 between $5.70 and $5.85 per share and for 2009 between $6.80 and $7.00.[13]
Investors responded positively to the news, sending the shares up in premarket trading. The company also reaffirmed its guidance of $5.70 to $5.85 this year and gave guidance of $6.80 to $7 per share for 2009. Analysts expected profit of $5.93 this year and $6.87 for next year. This goes to show you that yesterday's dogs become today's heroes on Wall Street.[25] Operating margins in the defense business expanded by 120 basis points to 11.4%. Boeing also reiterated its 2008 guidance range of $5.70 to $5.85 a share, and said it expected 2009 profit of $6.80 to $7.00 a share.[26]
Boeing anticipates big increases in profits next year. It's projecting free cash flow will climb from $2.5 billion to $6 billion in '09, with EPS jumping about 20 percent, to a range between $6.80 and $7. Personally, I suspect it may go even higher in 2010: Boeing will start earning a bit of profit on its 787 deliveries. It also will start seeing much better margins on its good ol' aluminum jets. The planes it's delivering now were sold during the post-September 11 slump, when Boeing had to cut some pretty sharp deals.[23] Commercial sales rose 8 percent to $8.16 billion, generating a 39 percent jump in operating earnings, while Boeing's military business saw sales fall 1.8 percent to $7.58 billion even as profit increased 10 percent.[17]
NEW YORK (Thomson Financial) - Boeing (nyse: BA - news - people ) Co. Wednesday reported first-quarter earnings of $1.21 billion, or $1.62 a share, up from a year-ago profit of $877 million, or $1.13 a share.[5] Profit rose to $1.21 billion, or $1.61 a share, from $873 million, or $1.12, a year earlier, the company said in its earnings release (pdf).[25] Profit from continuing operations rose to $1.21 billion, or $1.61 a share, from $873 million, or $1.12, a year earlier, the Chicago-based company said today in a statement.[17]
Cash and investments in marketable securities totaled $12.1 billion at quarter-end, up 49 percent from the same period last year but unchanged during the first quarter (Table 3). The company spent $1.2 billion to acquire 15.6 million of its shares in the quarter, enabled by the recent $7 billion share repurchase authorization. In the first quarter, the company contributed $506 million to its pension plans.[4] The company reported net income of $1.2 billion for the quarter, compared to $877 million in the first quarter of last year.[15]
The aerospace company said it earned $1.2 billion, or $1.62 per share, for the quarter ending March 31. That compares with $877 million, or $1.13 per share, a year earlier.[1] First quarter net income increased 38% to $1.2 billion or $1.62 per share compared to $877 million or $1.13 per share in the same quarter of 2007.[13] Income from continuing operations for the first quarter was $1.21 billion, or $1.61 per share, up from $873 million, or $1.12 per share in the prior year quarter.[12]
For the recent quarter, the Chicago-based manufacturer said net earnings rose to $1.21 billion, or $1.62 a share, from $877 million, or $1.13 a share, a year earlier.[8] Operating cash flow for the quarter more than doubled to $1.93 billion from $728 million in the same period last year, reflecting the strong operating earnings and higher commercial airplane orders.[12] Citigroup analyst George Shapiro told investors that the results would likely be the company's best of the year. The company's commercial airplane segment saw its operating profit grow 39 percent to $983 million in the January-through-March quarter.[1] "Investors (are) apt to like strong (first quarter) and initial. guide for 2009," Cowen & Co. analyst Cai von Rumohr wrote in a research note Wednesday morning. The company's commercial airplane segment saw its operating profits grow 39 percent to $983 million in the January-through-March quarter.[10]
Operating earnings grew 39 percent to $983 million while margins expanded to 12.0 percent, driven by higher delivery volume and services sales and lower research and development spending, it said. During the quarter, the company delivered its 1,400th 747 airplane and its 700th 777 airplane.[21] The segment's earnings from operations surged 39% to $983 million from $706 million a year ago, while operating margins expanded to 12.0% from 9.3% on higher delivery volume and services sales, in addition to lower R&D; spending. During the quarter, Boeing delivered its 1,400th 747 airplane and its 700th 777 airplane.[12]
Total earnings from operations for the segment increased 10% to $860 million from $784 million in the same period last year as the segment expanded operating margins for the quarter by more than 120 basis points to 11.4% from 10.2% a year ago.[12]
Support systems revenue rose 1% to $1.6 billion and operating margin of 12.5% and earnings was unchanged at $204 million.[13] Boeing defense revenue in the quarter fell 2% to $7.56 billion and operating margins rose 1.2% to 11.4%.[13] For 2009, IDS expects revenue to grow to $33.5 billion to $34.5 billion, with operating margins exceeding 10.5 percent. Boeing's total R&D; forecast for 2008 is increased to between $3.6 billion and $3.8 billion, up from between $3.2 billion and $3.4 billion due to the new 787 schedule announced earlier this month and additional 747-8 costs.[4] Boeing Integrated Defense Systems (IDS) expanded operating margins by 120 basis points to 11.4 percent on revenues of $7.6 billion.[4]
Boeing's other main division, Integrated Defense Systems, delivered a 10 percent increase in operating profits to 860 million dollars as revenues grew two percent to 7.6 billion. The company made no comment on the massive contract for refueling tankers lost earlier this year to a joint venture of Northrop Grumman and European-based EADS, parent of Boeing rival Airbus.[7] Overall revenue was a little off. Boeing Commercial saw its profit rise eight-percent and the defense side two percent. More importantly than what Boeing did, it was expected to be a good quarter, its what they're going to do over the next couple of years, considering the 787 delays, and what Boeing may have to pay to upset customers. Right now, they think things are going to be o-k. sticking with an earlier estimate of making 67-68 billion in revenue this year, and 72-73 billion in 2009. There's no mention in regards to charges from the 787 delay.we could get more later this morning in the teleconference.[27]
CHICAGO (AFP) — Boeing said Wednesday its first-quarter profit rose 38 percent from a year ago to 1.2 billion dollars amid strong results from commercial airplanes and defense, despite a soft economy.[7]
"We're at a crossroads point right now as to whether we'll see a recovery in the economy on a global basis or whether we'll see a further cooling, which would then result in cancellations and some push-outs in terms of delivery schedule,'' Arment said. About 59 percent of Boeing's revenue last year, including sales at its military and space units, came from within the U.S. About 21 percent of the Seattle-based commercial airplane unit's orders came from U.S. airlines.[11] New York - U.S. airplane giant Boeing Co. reported Wednesday that its net income in the first quarter reache 1.21 billion dollars, up 38 per cent on the previous year period, thanks to strong growth in commercial planes sales.[28] Airliner deliveries rose 8.5%, with almost two-thirds going overseas, and Boeing's commercial backlog reached a record US$271-billion. The demand still wasn't enough to sustain its stock, which dropped 15% in the quarter on delays for the new 787 Dreamliner and the surprise loss of a US$35-billion U.S. defense competition to a team including larger rival Airbus SAS. "We are encouraged that they added to the backlog in the first quarter," Eric Marshall, research director at Dallas-based Hodges Capital Management, said in a Bloomberg Television interview. Hodges is adding to its 330,000 shares.[18] Improved deliveries helped Boeing Co. beat analyst forecasts with a 38 percent earnings gain for the first quarter, despite delays with the Chicago-based company'''s 787 Dreamliner program.[20] Despite delays to its 787 Dreamliner, Boeing Co. earnings leapt 37 percent in the first quarter, the Chicago aerospace giant said Wednesday. Growth in its St. Louis-based defense unit was sluggish.[29]
Operating earnings for the unit grew 39 percent to 983 million dollars. During the quarter, the company delivered its 1,400th 747 airplane and its 700th 777 airplane. The company reiterated that progress on the new 787 Dreamliner "continues on the revised schedule announced earlier this month" and that the company "continues to address slower-than-expected completion of work that traveled from supplier facilities into Boeing's final assembly line and unanticipated rework."[7]
Precision engagement & mobility systems delivered first-quarter operating earnings of $389 million on $3.3 billion in revenue and backlog increased during the quarter to $74.8 billion driven by the new V-22 multi-year procurement contract.[13] At the company's big defense segment, revenues slipped 2 percent to $7.58 billion, but earnings from operations nonetheless strengthened 10 percent to $860 million.[30]
Because Boeing will have to pay customers compensation for late deliveries, the 787's difficulties are expected to generate an estimated $4 billion in unplanned-for costs for Boeing in coming years. However, the company reaffirmed its earlier guidance that 2008 per-share earnings will land between $5.70 and $5.85.[30] '''When you look at the size of the backlog ''' it'''s not going to affect the overall health of the program,''' Ostrower said. Within two years, he added, Boeing will have sold 1,000 of the aircraft. '''You can'''t beat that number anywhere,''' he said. Boeing also used Wednesday'''s announcement to reaffirm its earlier guidance that 2008 earnings per diluted share will finish somewhere between $5.70 and $5.85.[20] For fiscal year 2009, Boeing forecasts earnings between $6.80 per share and $7.00 per share on strong production program performance and decreases in R&D; as well as pension expense.[12] Analysis''polled by''Zacks Investment Research predict Boeing'''s earnings per share will increase to $6.92 next year.[20]
On average, analysts surveyed by Thomson Financial expected Boeing to earn $1.35 per share on $16.5 billion in revenue.[10] Revenues are predicted between $72 billion and $73 billion, while earning shares are expected to climb between $6.80 or $7 per share.[14]
Boeing's first-quarter earnings of $1.2 billion, or $1.62 a share, beat analysts' expectations for $1.35 a share and represented a 38.0% increase from year-ago earnings of $877.0 million, or $1.13 a share.[3] Boeing reported net income of $1.21 billion, or $1.62 a share, up from $877 million, or $1.13 a share, a year earlier.[16]
A decline in Boeing shares following the first 787 delay in October deepened after the company announced another postponement in January and then unexpectedly lost a $35 billion U.S. Air Force tanker aircraft competition on Feb. 29.[17] The company reports free cash flow of $1.5 billion, which is more than five times the free cash flow it generated in the first quarter of 2007. In a nod to the upcoming contract talks with the Machinists union and SPEEA, Boeing says it contributed $506 million to its pension funds during the quarter.[15] The Boeing Company today reported revenue increased 4% first quarter 2008 to $16.0 billion from $15.3 billion of 2007.[13] The company's non-cash pension expense is expected to be approximately $0.8 billion for 2008, falling to approximately $0.5 billion in 2009, though it may vary due to discount rates and investment returns. Discretionary cash funding of Boeing's pension plans is expected to be approximately $0.5 billion in each of 2008 (contributed during the first quarter) and 2009, though the company will continue to evaluate making additional discretionary contributions to its pension plans.[4]
"We are methodically working through our challenges, including the start-up of the 787, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our company." Boeing booked 289 gross orders for commercial planes during the quarter, most of them to overseas customers, raising its backlog to $271 billion.[31] Total company backlog as of March 31 reached a record $346 billion, up 32% year-over-year, with growth driven by commercial airplane and V-22 multiyear orders.[19] The company's total backlog, including defense orders, rose 32 percent, to $346 billion.[31]
Boeing also reports a record backlog at the end of the quarter. It increased 32 percent from last year to $346 billion.[14] Boeing capital's portfolio balance at the end of the quarter was $6.3 billion, down 20% from $7.9 billion last year primarily on customer prepayments, normal portfolio run-off and depreciation.[13]
Table 6. The "Other" segment consists primarily of Boeing Engineering, Operations and Technology, as well as certain results related to the consolidation of all business units. Other segment expense was $50 million in the first quarter, reduced slightly from $55 million of expense in the same period last year.[4] During the first quarter, two airlines went out of business - Chicago-based ATA Airlines and Aloha Airlines, based in Honolulu. Another, Denver-based Frontier, declared bankruptcy. This week, United Airlines parent company UAL announced plans to ground 30 older jets after sustaining losses of $537 million to start the year, the result of soaring fuel prices.[23]
In reality the 747-8i (Advanced) has been offered to the airlines for over 6 years. Other 747 stretches before that. seattletimes.nwsource.com/html/businesst echnology/2002161936_boeing27.html During the last 7 years 1 passenger 747 order was placed for the 747. Loyal long term 747 customers like Air France, British Airways, Lufthansa, Singapore Airlines, Korean, Qantas, Virgin and Malaysia have compared the 747-8i and A380 and decided with their check books.Some explained publicly why they did (check QF, SQ and BA) In Boeing original business case two thirds of 747-8 sales would be for passenegr aircraft, one third for freighters. 747-400ERF would have been sold to if the 747-8F would not have been available. 747-8f's will be competing with $80 million converted 747-400F that will flush the market when A380 production ramps up.[32] Operating earnings grew 39% to $983 million, driven by higher delivery volume and services sales and lower R&D; spending. During the quarter, the manufacturer delivered 115 commercial aircraft, up 8%, including its 1,400th 747 and its 700th 777, while booking 289 gross orders.[19] Earnings from operations increased 39% to $983 million. During the quarter, the company delivered its 1,400th 747 airplane and its 700th 777 airplane and booked 289 gross orders during the quarter.[13]
Wednesday morning, the company reported earnings of $1.21 billion, or $1.61 a diluted share, a big improvement over the year-ago period's $877 million, or $1.12 a share.[30] The Chicago-based company posted a first-quarter profit from continuing operations of $1.21 billion, or $1.61 a diluted share, vs. $873 million, or $1.12 a diluted share.[22] Analysts polled by Thomson Financial had expected a profit of $1.35 a share on revenue of $16.52 billion.[22] The mean estimate of analysts polled by Thomson Financial was for a profit of $1.35 a share in the March period on revenue of $16.52 billion.[5]
Revenues rose 8 percent to $8.16 billion, but as a result of the fatter margins operating profits at the group climbed 39 percent to $983 million from $706 million.[30] BCA revenue guidance for 2008 remains between $34.5 billion and $35 billion, and operating margin guidance is unchanged at approximately 11.5 percent.[4] IDS' revenue for the year is expected to grow to $33.5 billion to $34.5 billion, with operating margins exceeding 10.5%.[12] Commercial Airplanes' revenue is expected to grow to between $37 billion and $38 billion in the year, accompanied by margins of about 11.5%.[12]
Contractual backlog rose to $271 billion, increasing to more than seven times BCA's expected revenues for 2008. Revenues for Boeing's Integrated Defense Systems, or IDS, declined 2% to $7.58 billion from $7.72 billion in the prior-year period on lower revenues at its Precision Engagement & Mobility Systems and Network Space Systems divisions.[12] Contractual backlog rose to a record $271 billion, increasing to more than seven times BCA's expected 2008 revenues. Progress on the new 787 Dreamliner continues on the revised schedule announced earlier this month.[4]
The backlog is currently more than two times expected revenues for 2008. Boeing Capital Corporation, or BCC, witnessed 13% downturn in its quarterly revenue to $185 million from $213 million reported last year.[12] Boeing Capital Corporation (BCC) reported first-quarter pre-tax earnings of $61 million compared to $73 million in the same period last year which included a larger portfolio (Table 6).[4]
The 30-stock average has gained 89 points in early Wednesday trading, and Boeing's $4.46-a-share gain accounts for 36 points of that increase. The aerospace giant found buying interest after reporting stronger-than-expected quarterly earnings and boosting guidance for the rest of the year, and that news has helped remove some of the sting of late, as the stock has stumbled a bit as it has been forced to push back shipments of its 787 Dreamliner.[33] Boeing Chief Executive and Chairman Jim McNerney told employees Monday that the innovative manufacturing model for the globally built 787 Dreamliner crossed the line from leading-edge into "bleeding-edge." After a tour of the 787 assembly line in Everett last week and detailed briefings from program chief Pat Shanahan, McNerney said he believes Boeing can staunch the bleeding and stick to the new schedule laid out earlier this month. McNerney's message to all employees, posted on Boeing's internal Web site, came two days before he must give a public update on the plane, when the company reports first-quarter earnings Wednesday.[34] McNerney said Boeing is in "serious" discussions with some eight to 10 major carriers about the Intercontinental. "I think there is a good chance we will have some (new orders) soon," he said of the Intercontinental. He was asked about the 748-8, and why Boeing is spending several billion dollars more than anticipated on the plane's development, during the conference call to discuss Boeing's earnings.[32]

A significant portion of the backlog -- approximately $154 billion -- comes from Boeing'''s 787 program. Boeing has already taken 892 orders for its new 787, a lightweight twin-engine aircraft made largely from composite materials, rather than aluminum. [20] Right now it is the commercial side that's growing. Boeing reported a 39 percent jump in profits in its commercial aircraft division, largely on the strength of deliveries of its 737 and 777, and its growing backlog of new orders for the 787. It's awaiting the results of its protest of the tanker decision, expected in early summer, and hoping Congress decides to buy more C-17 cargo planes, a production line that supports about 2,000 jobs in the St. Louis area and is due to run out next year.[29] April 23 (Bloomberg) -- Boeing Co. profit rose 38 percent in the first quarter, beating analysts' estimates, as the world's No. 2 commercial planemaker boosted deliveries and orders.[17] The Boeing Co. reported on Wednesday a 38 percent jump in its first quarter income over the previous year based on growth in its commercial jet business.[6]
Revenue for the quarter grew 8% to $9.98 billion from $9.28 billion in the previous year quarter. Los Angeles, California-based Northrop Grumman Corp. (NOC) is slated to report its financial results for the first quarter on April 24.[12] Total revenues for the quarter increased 4% to $15.99 billion from $15.37 billion recorded in the comparable quarter of the previous year.[12]
The company expects revenue for the year between $72 billion and $73 billion.[12] Revenue rose 4 percent to $16 billion from $15.37 billion a year ago.[8] Revenue rose 4% to $15.99 billion in the three months ended March 31 from $15.37 billion in the same period a year earlier.[5]
Sales of products were $13.69 billion, up from $13.23 billion a year ago, while sales of services rose to $2.30 billion from $2.14 billion in the same quarter of last year.[12] The results beat the $1.35 a share average estimate of 20 analysts in a Bloomberg survey. An 8.9 percent slump in the dollar this year has given Boeing an advantage over larger European rival Airbus SAS, whose costs are mostly in euros while jet sales are in the U.S. currency.[17] Boeing is also the second-largest U.S. defense contractor, trailing Lockheed Martin Corp. Boeing said today it expects to deliver 500 to 505 airliners in 2009, up from as many as 480 this year, and that the figure will grow again in 2010. Boeing reiterated its Jan. 30 forecast for 2008 earnings of US$5.70 to US$5.85 a share on sales of US$67-billion to US$68-billion.[18]
Analysts are expecting 2008 earnings of $5.93 a share and sales of $68.9 billion.[3] Credit Suisse analysts note that the company's 2009 guidance, released today, calls for earnings of $6.80 to $7 a share, or about 25 cents more than expectations.[33] In 2009, the company projects earnings in the range of $6.80 and $7.00 a share, compared to analysts' anticipated $6.87 a share.[3]
For 2009, the company said, it expects earnings per share to land between $6.80 and $7.00.[20]
On average, 22 analysts polled by First Call/Thomson Financial expected the company to earn $1.35 per share for the quarter.[12] Excluding a gain of a penny per share on the disposal of certain discontinued operations, the Dow component posted earnings of $1.61 a share in the latest quarter.[5] Earnings per share increased 1.4% to $1.75 from $1.60 in the year-ago quarter.[12]
Diluted earnings per share from continuing operations increased to $1.61 from $1.12, exceeding the analysts' forecast of $1.35 compiled''by Zacks Investment Research Inc.''[20] "We are methodically working through our challenges, including the start-up of the 787, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our company." The U.S. aerospace giant, which has been plagued by delays of its new 787 Dreamliner aircraft, reaffirmed its 2008 earnings forecast between 5.70 and 5.85 dollars per share.[8] Boeing (nyse: BA - news - people ) shares gained $3.53, or 4.5%, to close at $82.09 on Wednesday. The rollout of the company's much-hyped, fuel-efficient Dreamliner has turned into a nightmare as a result of unexpected production problems and delays, forcing Boeing to adjust its delivery schedule.[3] Despite Wednesday's gains, Boeing shares remain down 23% from the all-time high of $107.83, reached in July, before production snags with the 787 drove buyers away. Overseas orders and a well-oiled production line for its older machines propelled profits, though the company also saw a benefit of 17 cents a share from lower pension and deferred compensation costs.[26] For 2008, Boeing sees a profit of $6.80 to $7 a share, compared to analysts' view of $6.87 a share.[22]
For 2009, it said, with R&D; costs declining further (although not as rapidly as officials once planned) and with production efficiencies expanding, per-share earnings will be in the range of $6.80 to $7.00. That's in line with the $6.87 a share that analysts have been predicting.[30] The company sees earnings of between $5.70 and $5.85 a share, vs. analysts' expectation of $5.93 a share.[22] The Chicago-headquartered company reported first-quarter earnings of $1.62 a share, up from $1.13 a share a year ago.[26] On a per share basis, earnings surged 43% to $1.62 from $1.13 in the year-ago period.[12]
Boeing, the world'''s second-largest aircraft maker, earned $1.21 billion, or $1.62 per diluted share,''in the quarter ended March 31, compared with a gain of $877 million, or $1.13 per diluted share,''in the year-earlier period.[20] Boeing booked 289 orders during the quarter, bringing the segment's contractual backlog to $271.0 billion.[3] The Osprey order helped push Boeing's total backlog to a record $346 billion.[17] Total company backlog at quarter-end reached a record $346 billion, up 32 percent.[16]
The Chicago, Illinois-based company posted net income for the first quarter of $1.21 billion, up 38% from $877 million in the previous-year quarter.[12] Free cash flow rose to $1.52 billion from $277 million in the previous-year quarter.[12]
Precision Engagement & Mobility Systems delivered first-quarter operating earnings of $389 million on $3.3 billion in revenue.[4] Analysts had expected earnings of $1.35 on revenue of $16.52 billion, according to Thomson Financial.[25] Wall Street analysts surveyed by Thomson Financial, on average, expected earnings of $1.35 a share.[26]
Experts had been anticipating Boeing's per-share earnings would be about $1.35 a share.[30]
Boeing shares climbed $4.17, or 5.3 percent, to $82.73 in morning trading Wednesday. They have traded in a 52-week range of $71.58 to $107.83.[10] Boeing shares climbed $3.53 to close at $82.09 Wednesday, after trading as high as $83.36 earlier in the session.[1]

Boeing's 2008 revenue guidance is unchanged at between $67 billion and $68 billion. [13] Boeing IDS' revenue forecast for 2008 remains unchanged at a range of $32 billion-$33 billion.[12]
Boeing guided for sales between $72.0 billion and $73.0 billion, while analysts forecast sales of $74.7 billion.[3] Sales rose 4.0%, to $16.0 billion, from $15.4 billion, falling under analysts' expectations for sales of $16.5 billion.[3]
Revenue rose 4 percent to $16 billion. That was short of Wall Street's revenue expectations.[9] The profit jump came from improved margins: revenues rose only slightly, to $16 billion from $15.37 billion.[30]
Network & space systems revenue fell 3% to $2.7 billion and operating margin nearly doubled to 9.9% driven by healthy performance across the segment and a favorable settlement on a satellite program.[13]
The backlog in the defense division at the end of the quarter was at $74.8 billion on new V 22 multi-year procurement program.[13] The IDS backlog increased during the quarter to $74.8 billion driven by the new V-22 multi-year procurement contract.[4]
BCC's portfolio balance at the end of the quarter was $6.3 billion, down 20 percent from $7.9 billion last year primarily on customer prepayments, normal portfolio run-off and depreciation.[4] The results encouraged investors, who had pushed the stock down 15 percent in the quarter on Dreamliner delays and the surprise loss of a $35 billion defense competition to a team including Airbus.[17] The earnings exceeded analysts' estimates, although the revenue fell short. The company, which has been plagued by delays on its new big jet, the 787 Dreamliner, attributed the earnings strength in the quarter to "solid overall execution in both its commercial-airplane and defense businesses as well as lower unallocated costs."[31] Despite delays of its prized 787 Dreamliner that now stretch some 15 months, The Boeing Co. said Wednesday it expects to have sold more than 1,000 by the time airlines get their first jets in the third quarter of next year.[32] The company delivered 115 commercial planes in the quarter and booked 289 orders, including 75 Dreamliners. About 63 percent of the planes built went to overseas carriers such as Singapore Airways Ltd. and Dublin-based Ryanair Holdings Plc, which got 13 of the 737 model, the world's most widely flown commercial plane. U.S. airlines are ordering 737s to replace their aging domestic fleets as fuel prices have surged 70 percent in the past year.[17] With 80 percent of its record orders backlog booked with overseas customers, the Boeing Co. should comfortably weather the current U.S. credit mess, CEO Jim McNerney said this morning. "Right now, these developments aren't having a significant impact on us," McNerney said. "Our commercial airplane backlog is comprised of established, quality customers" - and only 11 percent of the orders are going to U.S. airlines, he added.[23] CHICAGO (AP) — Boeing Co., the world's second biggest commercial airplane manufacturer, reported a better-than-expected 38 percent jump in its first-quarter earnings, as it improved efficiency and recorded more orders for its aircraft.[1]
Boeing's Commercial Airplanes division produced first-quarter revenues of 8.2 billion dollars on an eight percent increase in airplane deliveries.[7]
Boeing delivered 115 commercial airplanes in the latest quarter, compared with 106 in last year's quarter.[30]
Boeing rose US$1.75, or 2.2%, to US$80.31 at 9:33 a.m. in New York Stock Exchange trading. Chief Executive Officer James McNerney had held his annual forecast until today to learn more about the effects of delays on the 787, which now won't enter service until next year's third quarter, 14 months late.[18] Boeing climbed $3.53, or 4.5 percent, to $82.09 at 4 p.m. in New York Stock Exchange composite trading.[17]

Boeing's profit margins were helped in part because research and development expenditures dropped $130 million, to $869 million. [30] Profits surprised in part because operating margins in Boeing's commercial aircraft business rose 270 basis points to 12%, boosted by orders from airlines in Asia and the Middle East.[26] Commercial sales rose 8% to US$8.16-billion, generating a 39% jump in operating earnings, while Boeing's military business saw sales fall 1.8% to US$7.58-billion even as profit increased 10%.[18]

Pressured by high fuel costs, airlines are eager to add the plane, which Boeing says will be up to 20% more fuel efficient than current models. Airlines, like their passengers, are accustomed to delayed planes. Boeing's rival, Airbus, also faces delivery setbacks for its star jumbo jet, the A380. In the quarter, the company posted an 8.0% increase in plane deliveries within its commercial business. [3] The company expects the first flight in the fourth quarter and deliveries to begin in the third quarter of 2009. Boeing also reaffirmed its 2008 and 2009 guidance, which fell below Wall Street's expectations.[22] As of now, Boeing expects to deliver 25 Dreamliners in 2009, down from earlier projections of 109 aircraft. Groh says that's too few to affect its bottom line, but any deliveries next year would come as a huge relief to investors. "I think the key point is that people are relived that the '09 guidance was within expectations," he says. "It sounds like they're being conservative on the 787 front and have assumed the first group are zero-margin aircraft.[26]
"We're off to a good start in what we expect to be another strong year of financial performance for Boeing," Chairman, President and CEO Jim McNerney said in a company statement.[22] "We're off to a good start in what we expect to be another strong year of financial performance," said Chairman and Chief Executive Officer Jim McNerney, adding that the company is "methodically working through our challenges," including the costly delays that have blighted the crucial 787 program.[30]

Only Lufthansa among major airlines has ordered the passenger version called the 747 Intercontinental. Boeing Chairman Jim McNerney said he expects the plane will generate orders for passenger versions of the plane before the year is out. "The guys are working this hard," said McNerney. The 747 has received only one order this year, from an unidentified customer who wants to use the jet for personal transportation. [24] To keep the line moving, Boeing has been funding early-stage production since last summer, at a cost of millions of dollars a month. McNerney said he's hopeful for a new order this year and another next year. "We're always a little bit on tenterhooks here," he said.[29]
The airline industry's "more tenuous'' condition because of the weakening economy isn't affecting Boeing's sales because higher oil prices are driving orders for new planes that use less fuel, McNerney said on a conference call.[17] "We've taken a more conservative approach to setting our milestones, based on our experience to date and the idea that being wrong yet again would be more of a burden to our customers than taking a little more time to get it right." McNerney sought to explain the company's missteps on the new airplane program by pointing to the huge risks attached to such a venture. "Fundamental, game-changing innovation like that we're pursuing on the 787 usually has a 'bleeding-edge' quality to it meaning it goes beyond 'leading edge' into a realm where both the risks and the potential returns are high," McNerney said. He said Boeing's plan for producing the plane with heavy reliance on global suppliers has been a challenge, but he defended it.[34] Speaking of margins, Boeing attributes the improvements to increased sales of airplane services, and big productivity gains, specifically with the 737 program in Renton and the 777 program in Everett. McNerney said "it's an article of faith" that the company will be able to wring more productivity improvements out of those programs in the future.[23] In addressing the troubled program, McNerney said '''we are methodically working through our challenges, including the start-up of the 787 program, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our company.''' Jon Ostrower, who writes the popular Flight Blogger blog for Flight International magazine, said he thinks it is smart that Boeing opted to take a more conservative approach to the 787 program.[20] In the company's earnings release, McNerney said problems with 787 are being fixed. "We are methodically working through our challenges, including the start-up of the 787, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our company," he said in a statement.[26]
Wall Street estimates averaged $5.93 a share for 2008 and $6.87 a share in 2009, according to Thompson. "Our two big core businesses continue to demonstrate strong performance and remain well positioned in their markets," CEO Jim McNerney said in a Wednesday morning conference call.[26] Wall Street's current consensus estimates are for earnings of $5.93 a share in 2008 and $6.87 a share in 2009.[5]
Earnings from operations for the division rose to $983 million from $706 million a year earlier.[2] The segment incurred expense of $50 million in the latest quarter, down from expense of $55 million in the same period last year.[12] During the most-recent quarter, general and administrative expenses declined to $775 million from $828 million a year earlier, while research and development expenses declined to $869 million from $999 million in the same quarter of last year.[12] Unallocated expense was $55 million, down from $199 million in the same quarter last year, driven by lower deferred compensation and pension expense.[4]
BCC contributed $35 million in cash dividends to the company during the quarter.[12] The capital corporation contributed $35 million in cash dividends to the company during the quarter.[13]
Revenue for the segment decreased to $75 million from $76 million in the previous-year quarter.[12] The company sees revenue of between $67 billion and $68 billion in 2008 and $72 billion and $73 billion in 2009.[5] IDS revenue guidance for 2008 is unchanged at $32 billion to $33 billion.[4] BCA revenue guidance for 2008 remains between $34.5 billion and $35 billion, it said.[21]
Total revenue came in at $15.99 billion, vs. $15.37 billion in the year-ago period.[22]
Total costs and expenses increased to $12.61 billion from $12.27 billion in the prior-year quarter.[12] Earnings from operations were recorded at $1.80 billion, compared to $1.31 billion in the year-ago quarter.[12]
Recalibrating market expectations for the 787 should help with 2009 goals, though Boeing's failure to win a key $35 billion military contract for midair refueling tanker aircraft has hurt.[26] IDS' backlog at quarter-end grew to $74.8 billion, driven by the new V-22 multi-year procurement contract.[12]
R&D; spending in the year is expected to decline to between $3.1 billion and $3.3 billion, while annual capital expenditures are expected to decline to approximately $1.7 billion.[12] Operating cash flow guidance for 2008 is unchanged at greater than $2.5 billion.[4] EPS guidance for 2009 is set at between $6.80 and $7.00 per share.[4] Earnings-per-share guidance for 2008 is reaffirmed at $5.70 to $5.85 per share.[4]
Tough economy? Don't tell that to Boeing. it may have some banks lining up around the corner looking for some help. Boeing's profit was up 38-percent in the quarter as it pushed out more than one hundred planes from its factories. They solidly beat forecasts with a dollar-62 per share, 27-cents better than the consensus.[27] In recent months, Boeing's future profit picture has dimmed, as it became clear that the planned 787 -- a technologically advanced plane that has drawn a large number of orders -- will be much later coming to market than officials had initially promised. Boeing, in a break with its lengthy tradition of keeping most production work in-house, sought to reduce costs by outsourcing the production of major components for the 787, retaining for itself the chore of final assembly. The ambitious plan has faltered, in large because suppliers up and down the company's global supply chain haven't been able to keep to the schedule Boeing laid out for them.[30] Boeing Co. said first-quarter profit jumped 38%, more than expected, as the world's second- biggest planemaker increased deliveries to airlines replenishing their fleets and built a record backlog of orders.[18] Although the U.S. airline industry is now experiencing dramatic financial problems, Boeing's commercial-aircraft division, with a record backlog of orders, is unaffected.[30]
Boeing says it's seriously talking with eight or ten airline customers about buying the passenger version of Boeing's new 747-8. The updated version of the venerable jumbo jet has accumulated 110 orders, a respectable number a year before the plane's first flight, but most of those orders are for the freighter version of the plane.[24] Boeing has a lot riding on the 787, which is the company's first new model since the 777 in 1990. The Dreamliner is seen as being the company's ticket to reclaiming its position as the world's largest plane maker, which it lost to Airbus SAS, a unit of European Aeronautic Defense & Space Co. (EADSY.PK, EADSF.PK), in 2003.[12] When it decided to engineer a new aircraft, the company also decided to engineer a new manufacturing process. That process includes dozens of partners around the globe that build and preassemble big pieces of the plane. Boeing's job is to manage this far-flung supply chain and to make sure the parts fit together flawlessly on the factory floor in Everett, Wash. That, too, is the future, but only if Boeing can figure out how to do it right.[35]
Cash, Marketable Securities and Debt Balances Quarter-End (Billions) 1Q08 4Q07 Cash $7.7 $7.0 Marketable Securities(1) $4.4 $5.1 Total $12.1 $12.1 Debt Balances: The Boeing Company $3.9 $3.9 Boeing Capital Corporation $4.3 $4.3 Total Consolidated Debt $8.2 $8.2 (1) Marketable securities consists primarily of investments in high-quality fixed-income and asset-backed securities classified as "short-term investments" and "investments."[4] The gain, along with a healthy outlook by the company for 2009, pushed shares up $3.53 or''4.5 percent to $82.09.[20] In Wednesday's regular trading session, BA is trading at $80.76, up $2.20 or 2.80% on a volume of 2.66 million shares.[12] Shares rose 2.3% to $80.40 in recent premarket action. Other aerospace companies did not fare well Tuesday.[22] Profit from continuing operations rose to US$1.21-billion, or US$1.61 a share, from US$873-million, or US$1.12, a year earlier, the Chicago-based company said today in a statement.[18] "Boeing is better positioned against Airbus'' in part because of next year's scheduled arrival of the 787 Dreamliner, Eric Marshall, research director at Dallas-based Hodges Capital Management, said in a telephone interview. Hodges is adding to its 330,000 shares.[17] The revised Dreamliner schedule, disclosed April 9, is "an achievable, high-confidence plan,'' McNerney said in a memo to employees yesterday. "As long as there's not further deterioration in the schedule, that alone would be viewed as a positive,'' said Eric Marshall, research director at Dallas-based Hodges Capital Management, which is adding to its 330,000 Boeing shares.[11] The 787 delays meant that Boeing wasn't able to release experienced engineers from the Dreamliner program to go to work on the 777 freighter and 747-8, McNerney said. That's meant hiring new engineers - and training them - to work on developing those programs. Once they're all done, Bell said, R&D; costs will fall. (The expectation is a 13-percent drop in 2009.)[23]
Boeing gained altitude in the last quarter on higher demand and increased plane deliveries, despite expectations that Dreamliner delays would put sales in a holding pattern.[3] Since 1994, when the last all-new Boeing model, the 777, took to the sky, Boeing's chief rival, Airbus, was calling the shots in aerospace innovation. The Dreamliner, also known as the 787, is Boeing's gambit to take back its title, not only as the leader in overall sales of commercial jets, but also as visionary for an industry. With its carbon-fiber skin, the Dreamliner is the first commercial jet that has more in common with a B-2 stealth bomber than the riveted aluminum tube in which passengers currently fly.[35]
Boeing expects to deliver between 475 and 480 commercial airplanes in 2008 and between 500 and 505 in 2009, including 25 Dreamliners.[3] "Boeing reported excellent first-quarter results Wednesday that support our view that, despite credit market turmoil and a slowing domestic economy, the current upswing in commercial airplane deliveries should continue through at least the end of the decade," Morningstar analyst Brian Nelson told investors in a research note.[1] Nelson, who gives Boeing a four-out-of-five-star rating, added that '''despite credit market turmoil and a slowing domestic economy, the current upswing in commercial airplane deliveries should continue through at least the end of the decade.'''[20]
The company's financial guidance summarized in Table 7 reflects strong business performance forecasts at IDS and BCA, increasing commercial airplane deliveries, decreasing investment in new airplane development and company-wide productivity gains.[4] Boeing said that Commercial Airplanes' 2008 delivery guidance remains between 475 and 480 airplanes and is sold out.[21]
The company cites the growth was driven by commercial airplanes and V-22 multi-year orders.[14]

Delta Air Lines Inc., the nations third-largest carrier, reported a steep loss of $6.39 billion on Wednesday, on soaring fuel prices and a steep decline in the companys market value. This article is copyrighted by International Business Times. [8] Headquartered in St. Louis, Integrated Defense Systems is a $32.4 billion business with 72,000 employees worldwide.[16]
Profits were up 10 percent, but revenue fell at Integrated Defense Systems, the Hazelwood-headquartered unit that accounts for roughly half of Boeing's business and is one of the region's largest employers.[29] Spurred in part by strong growth in the commercial-airplane and defense business, Boeing Co. posted a 38 percent increase rise in first-quarter net income, the company announced Wednesday.[16]
Scott Carson, CEO of Boeing's commercial-aircraft business, said in February that high demand for the plane would probably make it the company's "product of the year."[18] Boeing is still undecided whether it will update its 777 to compete with the largest version of Airbus' planned A350, the A350-10. The Boeing chairman said the company still has several years to see how Airbus does with the A350 and how the airline industry reacts before making such a decision.[24]
Analysts expect Boeing to have to reimburse airlines billions of dollars for the delays.[11] The recently announced Delta-Northwest merger will only help, McNerney said, because the merged airline will have a stronger balance sheet. Boeing has figured out how much extra it's going to have to spend to compensate suppliers for lost revenues due to the 787 delays, but it doesn't have a handle yet on how much it's going to have to pay in customer penalties, CFO James Bell said. (Those penalties could be either cash, or in kind - some airlines may opt for cut-rate 767s to get them by until their 787s are ready.)[23] Less than two weeks ago, Boeing announced a third major program delay that leaves the first 787 deliveries some 15 months later than originally intended and envisions a much slower ramp-up in production. "It's an achievable, high-confidence plan," McNerney's message said.[34]
The unit is performing well, said Boeing Chief Executive Jim McNerney. "IDS is healthy and continues to build on its momentum with a series of contract wins last year," he said, noting that it won nine out of 11 major contract competitions in 2007. "That's one hell of a record," he said.[29] Chief Executive Jim McNerney said on a conference call that Boeing continues to see a strong world-wide market for commercial aircraft.[36] The outlook for another Boeing plane in development, the 747-8, is not so clear. Boeing Chairman and Chief Executive Jim McNerney acknowledged he would like to see more orders for the passenger version of the bigger and more efficient jumbo jet.[32]
During the first-quarter, Boeing got 75 orders for the plane, bringing total orders to 892 planes.[3] The Osprey order helped push Boeing's total backlog to a record US$346-billion.[18]
RE: "So what?" If a Airbus A3XX gets 1x 20 aircraft order in a period of 7 years during an economic / aircraft order boom while Boeing is struggling, some clear qualifications / analyses would have been made here. Now project those on the 747 passenger.[32] The company continues to produce jet aircraft at full capacity, and the planes it is delivering now are priced more fully than the orders it was fulfilling a year ago.[30]
Operating margin was 11.9 percent reflecting product mix and aircraft deliveries in the quarter. In this segment, the company captured a multi-year contract for V-22s and a CH-47 contract.[4] Operating margin was a strong 12.5 percent, reflecting solid program execution and contract mix. In this segment, the company captured the first multi-year sustainment contract for the F-22 Raptor fleet.[4]
Operating margin nearly doubled to 9.9 percent driven by strong performance across the segment's array of programs and a favorable settlement on a satellite program.[4]

Segment sales rose 8.0%, to $8.2 billion, and were helped by higher services volume. [3] At a list price of $162 million, that's worth about $145 billion.[35] At December 31, 2007, "short-term investments" included time deposits of $1.0 billion and commercial paper of $0.8 billion.[4] At March 31, 2008, it also includes time deposits of $1.5 billion and commercial paper of $0.1 billion classified as "short-term investments."[4]

The company said the earnings came on revenues of almost 16 billion dollars, up 4.1 per cent. [28] Boeing Chief Financial Officer James Bell made the prediction during the company's call with analysts and media to discuss first-quarter earnings.[32]
Earnings from operations for the segment declined to $61 million from $73 million in the year-ago period.[12] Total pension expense for the quarter decreased by $61 million to $191 million, of which $124 million was allocated to BCA and IDS, and the remaining $67 million recorded as unallocated expense.[4] The program won 75 orders in the quarter and total firm orders since launch rose to 892 airplanes from 57 customers.[13]
The company delivered 115 aircraft, including 737s, 747s, 767s and 777s, in the three months through March, 8.5 percent more than in the first quarter of 2007.[11] The company expects the first flight to occur in the fourth quarter of 2008 with first deliveries to begin in the third quarter of 2009.[4]

The results, announced Wednesday by the Chicago-based aerospace and defense company, sent Boeing shares to a two-month high. [1] Boeing spent US$1.2-billion last quarter to buy back 15.6-million shares, part of a US$7-billion repurchase authorization.[18]
Continental Airlines Inc. received 10 737s and Southwest Airlines Co. received 12 in the quarter, according to Boeing's Web site.[18] Boeing is also getting a lift as carriers including Continental Airlines Inc. buy more 737s to replace older, less fuel-efficient planes to reduce the effect of record oil prices.[17] A sizable camp believed that Boeing, the outfit that ushered in the Jet Age, no longer had the right stuff to build an entirely new airliner. Happy to profitably stretch and tweak versions of its family of such planes as the 737 and 747, Boeing ( BA, Fortune 500 ) had seen its day of defining the direction of commercial aviation.[35] With customers growing impatient, Boeing's reputation is on the line. Says Pat Shanahan, the 787 project director: "How well we do on this will define the fundamentals for manufacturing commercial planes in the future. That's the big bet." For this exclusive photo essay, Fortune was given unprecedented access to the Dreamliner's manufacturing process around the world, from initial twists of carbon fiber to finished wings.[35]
Investors in the past few months have shunned Boeing, worried about manufacturing glitches the aerospace giant has suffered, resulting in delayed deliveries of the new 787 commercial jet.[36] Ride along as Boeing's new 777-200LR sets a new world record for the longest commercial jetliner flight.[32]
I think there are some mutual agreed deadlines not too far away. Boeing has better ways to spend Billions and its most talented aerospace engineers for the next 5 yrs: 787 development / certification / ramp up, 787-10, 737 replacement, C-130 replacement, 777 upgrade, the new bomber, the heli business. This is not about preserving the beautifull Queen of the Skies.[32] Deliveries are critical because that's when a planemaker gets paid. Boeing also may give details tomorrow about penalty payments to customers and suppliers after declining to discuss those on an April 9 conference call, said Alex Hamilton, an analyst with Jesup & Lamont in New York.[11] The program is now running 15 months late amid Boeing's struggles with a new production method that relies on worldwide suppliers to do more assembly work. Boeing has had to redo some of its suppliers' work and has suffered from a lack of 787 parts.[16]
A reduction in research-and-development spending will help next year's profit, Boeing said.[17] Next year's profit will be helped by a decrease in spending on research and development, Boeing said.[18]
Boeing Co. posted a better-than-expected gain in first-quarter profit, up 38%, on strength in its commercial-airplane business.[36]
Last year's results were affected by adjustments related to the United Launch Alliance joint venture and revised cost estimates on a satellite program. Support Systems continues to generate strong profits on its broad portfolio of services and logistics programs.[4] Launched in November 2005 the 747-8 program has already accumulated one hundred and ten orders. Wow! You can expect about 40 more orders this year.[32]
After it finishes delivering them, it will start building and delivering the planes it sold during record sales years of 2005-2007, which will have much better margins.[23] Since it was made available for sale in 2003, Boeing has sold 892 Dreamliners to 57 customers around the world.[35]
Aerospace and defense contractor Boeing BA on Wednesday beat Wall Street's bottom line expectations, driven by strong demand for its airplanes.[22] In 2009, BCA expects to deliver between 500 and 505 commercial airplanes, including about 25 Dreamliners.[12] In 2009 BCA expects to deliver between 500 and 505 commercial airplanes -- including approximately 25 Dreamliners -- and is essentially sold out.[4]

The fuel-efficient plane has been beset with delays the company attributed to outside contractors and won't be delivered to customers until late 2009. Its bigger rival in commercial aircraft is Europe's Airbus. [10] On the next major aircraft program the company "might draw some lines in different places," McNerney said. "There might be more of an adjustment to our strategy rather than a change," he said.[24]
The defense unit, in a joint venture with Textron Inc., won a Pentagon contract in the quarter for as many as 35 V-22 Osprey tilt-rotor aircraft each year through 2013.[18] John Gillie writes about the aerospace and airline industries, commercial development and consumer issues. During his 30-year-tenure at The News Tribune he has covered issues as diverse as the Native American fishing rights disputes, crime and the courts, the wood products industry and energy. He lived in Tacoma with his family for 25 years, but now lives in Kent because his wife heads a five-state non-profit foundation headquartered in Ballard, and it only seemed a sensible compromise to make considering their workplaces are 40 miles apart.[24] Noting the strength in international aviation markets, Jon Ogg on the 24/7 Wall St. blog says, "What is amazing here is that the U.S. airlines' woes are not yet bleeding over to Boeing."[31] Al Goldman, analyst at Wachovia Securities, called the results from Boeing "much better than expected."[7] The forecast is "fairly impressive,'' Cai von Rumohr, an analyst at Cowen & Co. in Boston who rates the shares as "outperform,'' told Bloomberg Radio. "Their style has been, because of the uncertainty of the 787, to start off with conservative guidance, so if they're putting a number like that out at this point, given that they could have picked a lower number, my guess is they feel relatively good.'' One reason earnings beat analyst expectations is that expenses including research and development were lower than anticipated, he added.[17]

Boeing is talking with customers about "appropriate mitigation'' for the delays, Chief Financial Officer James Bell said on the call today. [17]
SOURCES
1. The Associated Press: Boeing profit jumps 38 pct as orders grow in 1st quarter 2. Boeing Q1 net income jumps 38 percent - Puget Sound Business Journal (Seattle): 3. Boeing Soars Despite Stalled Dreamliner - Forbes.com 4. Boeing Reports Double-Digit First-Quarter Earnings Growth and Record Backlog 5. UDPATE: Boeing 1Q net income $1.21B; co. still sees FY08 eps $5.70-$5.85 - Forbes.com 6. HeraldNet: Boeing's first quarter income up 38 percent 7. AFP: Boeing profits fly ahead of forecasts 8. Boeing Profits Top Wall Street Forecasts - International Business Times - 9. The Associated Press: Boeing profit jumps 38 pct as orders grow in 1st quarter 10. The Associated Press: Boeing profit jumps 38 pct as orders grow in 1st quarter 11. Bloomberg.com: U.S. 12. Boeing Q1 Profit Rises 38%; Reiterates FY08 Outlook, Issues Forecast For FY09 - Update [BA] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news . 13. Boeing Earnings Rise 32 - Earnings 14. Boeing Reports Record Growth 15. Washington CEO: Boeing profits up 38 percent 16. Boeing Co. posts 38 percent increase in Q1 earnings - St. Louis Business Journal: 17. Bloomberg.com: U.S. 18. Boeing Profit Rises 38% 19. ATW: Boeing off to'strong start' despite 787 troubles 20. Despite 787 delays, Boeing shares rise on earnings gain 21. AviationNews.net 22. Boeing Profits Soar, Beat Estimates | Aerospace/Defense | ATK BA GD LLL LMT NOC RTN - TheStreet.com 23. Washington CEO: McNerney: Boeing's insulated from U.S. credit crisis 24. The Biz Buzz - Boeing says it's talking to more potential customers for its slow-selling 747 25. Boeing's (BA) earnings soar - BloggingStocks 26. Boeing Margins Push Earnings Sky-High (Boeing, Northrop-Grumman) at SmartMoney.com 27. Boeing Soars in Q1 MyNorthwest.com 28. Boeing posts 38 per cent Q1 profits gain - Business 29. STLtoday - Boeing's St. Louis-based defense unit sees sluggish growth 30. Boeing profit jumps 38% -- chicagotribune.com 31. Boeing Posts Strong Profits - Portfolio.com 32. More 747-8 Intercontinental sales? 33. MarketBeat Blog - WSJ.com : Boeing, the Dow's Carrier 34. Boeing/aerospace | Current 787 plan is "achievable," McNerney tells Boeing workers | Seattle Times Newspaper 35. Boeing's big dream - Apr. 23, 2008 36. Free Preview - WSJ.com

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