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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

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