Boeing sees no big impact from 787 woes, profit beats

NEW YORK Wed Jan 30, 2013 7:42pm IST

An exhibitor stands near a scale model of Boeing 787 Dreamliner passenger jet at the Singapore Airshow February 2, 2010. REUTERS/Tim Chong/Files

An exhibitor stands near a scale model of Boeing 787 Dreamliner passenger jet at the Singapore Airshow February 2, 2010.

Credit: Reuters/Tim Chong/Files

Related Topics

Stocks

   

NEW YORK (Reuters) - Boeing Co (BA.N) posted a stronger-than-expected profit on Wednesday as its backlog of orders rose, and said its 2013 forecast "assumes no significant financial impact" from the grounding of its 787 Dreamliner jet by regulators.

Shares were up 1.6 percent at 74.80 in premarket trading.

Aviation safety agencies in the United States and Japan are investigating what caused lithium-ion batteries to burn on two 787 passenger jets earlier this month, prompting regulators to ground the planes worldwide.

Boeing said it is continuing to build the Dreamliner, but has halted deliveries, and analysts have raised concerns about the cost of the grounding and for fixing the battery problem on about 125 jets that Boeing has built so far.

"Our first order of business for 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers," said Boeing Chief Executive Jim McNerney.

Net income fell to $978 million, or $1.28 per share, from $1.39 billion, or $1.84, in the year-ago period, when the company posted a special tax gain.

Analysts expected earnings of $1.19 a share in the most recent fourth quarter.

Ken Herbert, an analyst at Imperial Capital, said wider profit margins on commercial airplanes drove the company to beat analysts' expectations. But he was disappointed by the company's 2013 profit outlook of $5.00 to $5.20 a share, compared with his target of $5.60. The figures largely exclude pension charges.

Revenue for the quarter rose 14 percent to $22.3 billion.

The company said it booked 394 net aircraft orders in the quarter, and that its total order backlog was nearly 4,400 planes valued at $319 billion, a record tally.

(Reporting by Alwyn Scott; Editing by Jeffrey Benkoe)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage