Boeing Profit Up On Rising Plane Deliveries

July 25, 2012

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Boeing reported a greater-than-expected 3 percent increase in second-quarter profit and raised its full-year earnings forecast on Wednesday as rising aircraft deliveries offset higher pension costs.

The Chicago-based company said quarterly profit increased to USD$967 million, from USD$941 million in the year-ago quarter.

Revenue jumped 21 percent to USD$20 billion, boosted by commercial aircraft and military sales.

Boeing's commercial plane unit, based in the Seattle area, reported a 34 percent increase in sales to USD$11.8 billion.

The gains offset a 52 percent jump in pension costs to USD$593 million.

Boeing sought to restrain enthusiasm however, warning that "global economic growth continues at a slow pace (and) uncertainties remain," in a presentation for financial analysts.

Boeing delivered 150 commercial planes in the quarter, up from 118 a year ago, a key number for profit as most of the payments from a customer come on delivery. Boeing is speeding up production of all its major models and is now delivering the 787 Dreamliner to customers after years of delays.

The company stood by its forecast to deliver a record 585 to 600 commercial planes this year. 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 also expects to win the annual order race for the first time since 2006 as it catches up with demand for revamped medium-haul jets. Former Boeing commercial chief Jim Albaugh last month predicted 1,000 total sales in 2012, compared with the European company's target of 600-650.