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Boeing beats estimates on faster commercial aircraft production [ICN.com Financial Markets](ICN.com Financial Markets Via Acquire Media NewsEdge) Boeing co reported an 8% increase in quarterly profit, boosted by a rise in commercial aircraft manufacturing and deliveries. In the first quarter of 2014, the company rolled 161 new airplanes off its assembly lines, which is much more than last year's. This contributed to a $965 million profit for the Chicago-based company. However, net income was down 12.7% from last year's $1.1 billion first quarter profit, but was mainly because Boeing suffered a $330 million accounting write-off associated with its retirement plans. Earnings per share fell to $1.28 compared with last year's $1.44. But if adjusted to exclude the write-off, earnings per share were at $1.76, which is highly above estimates of $1.56 a share from FactSet analysts. Shares climbed 2.7% or $3.44 to $130.99 in premarket trading after the report. Full-year earnings per share are expected in a range between $7.15 and $7.35, Boeing said. Revenue came at $20.47 billion , topping estimates of $20.15 billion, which was 8% from the $18.9 billion during the same quarter last year. Sales at Boeing's commercial plane unit jumped 19 %, mainly thanks to an increased rate of production on its 737 manufacturing lines. In April, the 737 program reached a production rate of 42 airplanes a month. Boeing hopes that rate reaches 47 airplanes a month in 2017, to sustain the worldwide demand for the narrow-body 737 jet. Also, the 787 Dreamliner showed progress, reaching a production rate of 10 per month, although only 18 jets were delivered during the first quarter. The progress showed by the new airplane is a major improvement over last year, when only one Dreamliner was delivered, citing the worldwide grounding of the fleet over worries from its lithium-ion batteries igniting. Revenue of the defense side fell 6%, while the company lowered its full revenue guidance for military aircraft to $14.2 billion, down from $15 billion. Boeing also made a stock-repurchase of 19.4 million shares for $2.5 billion during the first quarter. Meanwhile, the company also said it may offer some non-union employees based in St. Louis, and how are in management and specialis positions "voluntary layoffs." Officials said the employee will receive the same benefits of the layoff package as other who are laid off involuntarily. (c) 2014 ICN.COM. ALL RIGHTS RESERVED Provided by Syndigate.info, an Albawaba.com company |