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Boeing profits up but 2014 outlook lags expectations

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(Globalpost/GlobalPost)

US aerospace giant Boeing Wednesday reported a jump in quarterly profits on higher aircraft deliveries, but gave a 2014 earnings forecast that lagged analyst expectations.

Boeing notched sizeable revenue increases in both its commercial and military aircraft segments, lifting fourth-quarter profits by 26.1 percent.

"Strong fourth-quarter results underscored an outstanding full year of core operating performance that drove record revenue and earnings and increased returns to shareholders," said Boeing chairman and chief executive Jim McNerney.

Net earnings were $1.2 billion on revenues of $23.8 billion, compared with $978 million on revenues of $22.3 billion in the year-ago quarter.

The results equated to earnings of $1.88 per share, well above the $1.57 forecast by analysts.

But Boeing forecast 2014 earnings of $7.00-$7.20 per share, below analyst estimates for $7.57. The company's revenue outlook also lagged analyst expectations.

Highlights in the commercial aircraft segment included a successful launch of the Boeing 787-10 and 465 new orders in quarter. The company's order-book of 5,080 is valued at a record $374 billion, it said.

Boeing's defense unit, like commercial aerospace, also achieved increased revenues, thanks to higher military aircraft deliveries.

Boeing reported full-year earnings of $4.6 billion on revenues of $86.6 billion, up 17.6 from the 2012 profits of $3.9 billion on revenues of $81.7 billion.

Boeing was the best performer in the Dow Jones Industrial Average in 2013, thanks to strong orders from older airlines upgrading their fleets and some new players in the sector.

Boeing shares were down 1.8 percent at $134.65 in pre-market trade.

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http://www.globalpost.com/dispatch/news/afp/140129/boeing-profits-2014-outlook-lags-expectations