Boeing profits slump

Boeing’s
second-quarter profit fell 21 per cent as airplane deliveries and military
revenue fell.

The
company earned a profit of $787 million, higher than analysts expected, though
revenue fell more than expected. Boeing said revenue will rise next year as it
delivers its new 787 and 747-8.

The
second-quarter profit was down from $998 million a year earlier. Revenue fell
9.1 per cent to $15.57 billion, from $17.15 billion a year earlier. The profit
worked out to $1.06 per share, 5 cents more than expected by analysts. However,
Boeing’s revenue fell short of expectations for $16.13 billion.

Total
company backlog at quarter-end was $312 billion, down 1 per cent in the quarter,
as backlog for Defence, Space & Security declined during the period and was
somewhat offset by an increase in Commercial Airplanes backlog.

Boeing
delivered 114 commercial airplanes in the second quarter, ended 30 June
generating a profit of $683 million in that sector. But that was down from 125
deliveries and $817 millions in profit in the second quarter of last year.

The
recession was one factor in the drop. Another was problems with a seat
manufacturer in Japan, which delayed some deliveries.

Boeing
delivered no 747 aircraft in the second quarter or first six months of this
year. Last year, the company delivered two 747 planes in the first quarter and
six in the first half.

Military
revenue fell 8 per cent to $7.98 billion, with profits down 19 per cent to $711
million. The revenue drop-off was mostly because of its space unit.

Boeing
said 2011 revenue should rise as it delivers those planes. It said its new
planes for this year are sold out. And it booked $12.8 billion in future aircraft
orders or commitments at the Farnborough International Airshow last week.

“With
our commercial markets recovering, and the priorities of our government
customers gaining clarity, we remain well positioned for growth in 2011 and
beyond,” Chairman and CEO Jim McNerney said in a statement.

BIZBoeingprofitsSTORY

The engine and body of the Boeing 787 Dreamliner is seen at the Farnborough International Airshow 2010 in Farnborough, southern England.
Photo: File
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