Boeing take-off
January 25, 2012
Chicago-based aircraft manufacturer Boeing reported that its net profit in the fourth quarter of 2012 soared 20 percent from the previous year to $1.4 billion (1.08 billion euros), lifted by a strong rise in commercial aircraft sales.
Revenues came in at $19.6 billion for the quarter, an 18-percent quarter-on-quarter rise.
"Strong fourth-quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011," Boeing chief executive Jim McNerney said in a statement.
However, the figures were not as strong as the previous release of third-quarter growth, which had marked a 31-percent increase over the previous-year period.
737 MAX boost
For all of 2011, Boeing reported profits of $4 billion, which a 21-percent increase over 2010.
It delivered 477 airplanes, among them three of its new 787 and nine of its new 747-8 superjumbo jets
"Backlog remains strong with more than 3,700 airplanes [ordered], valued at a record $296 billion," McNerney said.
Boeing's CEO highlighted the contribution of the company's new 737 MAX, a revamped version of its popular 737 single-aisle plane. By year's end, the company had more than 1,000 orders and commitments for the 737 MAX, including 150 firm orders from launch customer Southwest Airlines.
McNerney said the Boeing had entered 2012 "with renewed momentum" and "an intense focus on productivity."
"We are well positioned to deliver growth and increased competitiveness, even as we face constrained US defense spending and pension headwinds," he added.
2012 turbulence
However, McNerney offered a weaker earnings outlook, predicting a 2012 profit of $4.05 to $4.25 per share, due to higher-than-expected pension expense and other one-off outlays. Analysts had been expecting a profit of $4.90 per share.
Boeing also said it expected revenues from its defense business to fall roughly 5 percent in 2012, as military spending in the US and Europe was slowing.
The company plans to deliver 585 to 600 commercial airplanes this year.
In spite of heavy sales and revenues last year, Boeing was still second to archrival Airbus in terms of plane sales.
In 2011, Airbus reportedly sold 534, compared with Boeing's 477. But, because Boeing has sold pricier jets, the two are closer in terms of revenue.
Author: Uwe Hessler (Reuters, AFP, dpa)
Editor: Nancy Isenson