Boeing (BA) Posts Higher Than Expected Q2 Earnings As Deliveries Of 737 And 777 Aircraft; Raises Full-Year Forecast

  @AlexCKaufman on July 24 2013 8:21 AM
Boeing 737-800
A brand-new, still unpainted Boeing 737-800 lands in Moses Lake, Washington state, on its first flight from the Boeing factory, February 2009. IBTimes/Alberto Riva

The Boeing Company (NYSE:BA) reported stronger-than-expected earnings on rising revenue from deliveries of its high-margin 737 and 777 aircraft. Revenue climbed 9 percent to $21.8 billion and profit increased 13 percent to $1.09 billion from $967 million a year earlier.

Excluding items such as pension obligations, Chicago-based Boeing earned $1.67 per share, beating analysts' consensus estimate of $1.58 per share, according to a Thomson Reuters survey.

For the year, Boeing said it now expects to earn between $6.20 and $6.40 per share, excluding items, up from its previous outlook of $6.10 to $6.30. Analysts expect it will earn $6.50 per share this year.

During the second quarter, Boeing's backlog of orders rose to $410 billion, bolstered by demand for its new 787 despite problems with the plane’s lithium-ion battery system. In a conference call on Wednesday, analysts were expected to probe executives about future issues with the aircraft, which has been involved in several unrelated accidents.

Overall, commercial aircraft revenue surged 15 percent, and the 737 and 777 models continue to be produced at higher rates.

Earlier this month, Asiana Airlines 777 crashed in San Francisco, killing two passengers. In New York Monday, a Southwest Airlines 737 skidded out after its front-end landing gear failed.

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