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Boeing flies to higher profit
Last Updated:2013-07-25 00:00 | China Daily
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Boeing posted a bigger-than-expected second-quarter profit as it ramped up deliveries of commercial planes like its 737 and 787.

The company also raised its full-year earnings guidance, and its shares rose nearly 2 percent in premarket trading.

Boeing is in the midst of a boom in airplane orders as airlines in Asia and Latin America expand. It is speeding up production of its 737 as well as the new 787. Deliveries of all commercial planes rose 13 percent to 169 planes during the quarter.

Deliveries of the 787 were temporarily halted earlier this year when the plane was grounded because of battery problems. But they resumed in May and Boeing delivered 16 of the jets during the quarter. It said it still expects to deliver at least 60 of the 787s this year - the same goal it had before the battery problems surfaced in January.

Boeing's net income rose 13 percent to US$1.09 billion, or US$1.41 per share. During the same period last year it earned US$967 million, or US$1.27 per share. Revenue rose 9 percent to US$21.82 billion.

The results include costs from pensions. On that basis, analysts surveyed by FactSet had been expecting a profit of US$1.30 per share with revenue of US$20.79 billion.

Boeing Co shares rose US$1.94, or 1.8 percent, to US$109.73 in premarket trading.

Boeing raised its full-year profit guidance to US$6.20 to US$6.40 per share - 10 US cents higher than its old guidance. Once it pays for pension expenses it will earn US$5.10 to US$5.30 per share. On that basis, analysts expect US$5.34 per share. The company now expects revenue of US$83 billion to US$86 billion, which is US$1 billion more than it previously predicted. Analysts were expecting US$84 billion.

Revenue from commercial planes rose 15 percent to US$13.62 billion, and profits in that segment jumped 20 percent to US$1.45 billion.

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