Boeing profit soars to 1.05 billion dollars, boosts outlook

Aerospace giant Boeing on Wednesday reported a second-quarter profit of 1.05 billion dollars and raised its outlook for the rest of 2007, saying its civilian aircraft and defense business is strong.
Boeing also said its 787 Dreamliner program, a future profit machine with 683 orders so far, is on schedule for deliveries next year despite some "pressures" from suppliers. The results for the April-June quarter compared with a loss of 160 million dollars in the same period a year ago when Boeing paid a hefty settlement to the US government for cost delays in a surveillance aircraft order.
But even excluding that payment, Boeing said its adjusted earnings per share surged 141 percent from a year ago.
The profit amounted to 1.35 dollars per share, 19 cents better than the average estimate on Wall Street.
Revenues increased 14 percent from a year ago to 17.03 billion dollars.
"Our results and increased outlook reflect strong markets, preferred products and services, and a focus on execution, growth and productivity," said Boeing chairman and chief executive Jim McNerney.
"Our extensive productivity gains enable us to invest to protect key growth programs while still improving our financial performance. In short, we are taking on our challenges directly as we continue to realize this company's potential."
Boeing said the results "reflect strong performance across the commercial airplane and defense businesses."
The US giant also increased its 2007 guidance for revenue, earnings per share and cash flow "based on strength in its core businesses and company-wide growth and productivity efforts," and reaffirmed its 2008 outlook.
For the 787, Boeing said its plans remain on schedule including its first flight, which is set to occur by the end of September.
"Boeing continues to address and manage pressures with respect to supplier performance, schedule and weight," the company said.
"While the risks inherent in the latter stages of major airplane development programs remain, Boeing continues to expect on-time delivery of the 787 in May 2008, in accordance with its contractual obligations."
Boeing said its Commercial Airplanes unit accounted for an operating profit of 960 million dollars as revenues increased 22 percent to 8.7 billion dollars. The company cited an 18 percent increase in deliveries to 114 airplanes in the period.
The operating profit from Boeing's Integrated Defense Systems unit, which includes space operations, increased to 854 million dollars on revenues of 8.0 billion.