Boeing profit up 18% on worldwide jet-buying spree
Growing number of fliers has airlines building bigger fleets
Robust demand for commercial jets and an increased pace of production helped Boeing earn $1.36 billion US in the third quarter, up 18 per cent from the same period last year.
Boeing stock is up five per cent on the year but was falling today after the earnings release.
Boeing Co. is benefiting, in part, from a record jet-buying spree by airlines, driven by cheap financing and a growing number of global fliers. In the past quarter alone, Boeing booked 501 net plane orders, bringing its backlog up to more than 5,500 airplanes valued at a record $430 billion.
The company is also increasing its production rates, helping to improve its cash flow. During the quarter, Boeing delivered 186 commercial jets, up from 170 during the same period last year.
528 planes delivered in 2014
So far this year, 528 new planes have rolled off Boeing assembly lines, compared to 476 during the first nine months of 2013. The vast majority of that increase comes from its popular 737 — a single-aisle plane that is the workhorse of airlines around the globe — and the 787 Dreamliner, a lightweight fuel-saving aircraft that had numerous delays and hiccups. Boeing 787 customers took delivery of 31 jets in the past three months.
The commercial jet revenue was slightly offset by Boeing's military arm, which saw its revenue fall 1.7 per cent to $7.91 billion. The company did benefit from doubling deliveries of its P-8 Poseidon jet, a modified version of the 737, to four aircraft. However, fewer government satellite launches pulled down its space systems revenue.
Overall, the aerospace and defence company had revenue of $23.78 billion in the period, also topping Wall Street forecasts. Analysts expected $23.04 billion, according to Zacks.
Looking ahead, the company increased its outlook for full-year core earnings per share — excluding non-operating costs such as pensions — by 20 cents to a range of $8.10 to $8.30 per share. The forecast for revenue remains in a range of $87.5 billion to $90.5 billion.