Boeing beats expectations for Q1 earnings

  • By Michelle Dunlop Herald Writer
  • Wednesday, April 27, 2011 5:37am
  • Business

The Boeing Co. reported $586 million in first quarter profit Wednesday, topping analysts’ estimates.

“We delivered strong operating performance, made significant progress on 787 and 747-8 flight testing, and scored a major win on the U.S. Air Force Tanker program,” said Jim McNerney, Boeing’s chief executive officer.

The aerospace giant said its earnings per share rose 11 percent in the first quarter to 78 cents per share from 70 cents per share in the first quarter last year. Analysts had expected Boeing to meet last year’s performance at 70 cents per share.

The company said its profit and earnings expectations for 2011 are unchanged. Boeing estimates full-year earnings per share at $3.80 to $4.

Boeing reaffirmed its plans to deliver the first 787 in the third quarter. The jet is more than three years late. Boeing also said it is on track to hand over the first 747-8 freighter by mid-year.

James Bell, chief financial officer for Boeing, said the company still plans to deliver a total of 25 to 40 787s and 747-8s this year. He estimates the total will be split between the two programs.

Boeing has dozens of 787s parked around Paine Field in Everett. The 787s have been built but need rework before delivery. Much of that work is being done in a facility at Paine Field that the company leased from Aviation Technical Services, a maintenance, repair and overhaul company. McNerney described the rework operation as a “second production area” which will be needed through next year.

The 787s slated for delivery this year will be a combination of newly built 787s and ones that have been reworked, McNerney said.

“We are confident, very confident” in the company’s estimate for 787 and 747-8 deliveries this year, McNerney said.

Due to delays and significant rework on early 787s, analysts have questioned when Boeing will be profitable on the Dreamliner program. McNerney declined to comment on the program’s profitability, saying Boeing will give more details on that when the first 787 is delivered this year.

Boeing is looking at “a new model or two on it beyond what we have now” on the 787, McNerney said, though he didn’t give details about the new versions. The company will first introduce the 787-8, which will be followed by the 787-9. Boeing previously halted work on a short-haul 787-3.

As for Boeing’s established lines in Everett, McNerney hinted the company is eyeing another production increase on its 777. The company is moving up to a rate of 8.3 aircraft monthly on the 777, but Boeing is “looking hard” at going higher, McNerney said.

Boeing has been considering the future of its Renton-built 737. The company continues to lean towards an all-new replacement for the single-aisle jet, McNerney said. But Boeing won’t make a decision on that jet until later this year.

The company’s shares hit a 52-week high of $77.31 this morning after the company’s earnings were announced.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Allan and Frances Peterson, a woodworker and artist respectively, stand in the door of the old horse stable they turned into Milkwood on Sunday, March 31, 2024, in Index, Washington. (Ryan Berry / The Herald)
Old horse stall in Index is mini art gallery in the boonies

Frances and Allan Peterson showcase their art. And where else you can buy a souvenir Index pillow or dish towel?

Everett
Red Robin to pay $600K for harassment at Everett location

A consent decree approved Friday settles sexual harassment and retaliation claims by four victims against the restaurant chain.

magniX employees and staff have moved into the company's new 40,000 square foot office on Seaway Boulevard on Monday, Jan. 18, 2020 in Everett, Washington. magniX consolidated all of its Australia and Redmond operations under one roof to be home to the global headquarters, engineering, manufacturing and testing of its electric propulsion systems.  (Andy Bronson / The Herald)
Harbour Air plans to buy 50 electric motors from Everett company magniX

One of the largest seaplane airlines in the world plans to retrofit its fleet with the Everett-built electric propulsion system.

Simreet Dhaliwal speaks after winning during the 2024 Snohomish County Emerging Leaders Awards Presentation on Wednesday, April 17, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Simreet Dhaliwal wins The Herald’s 2024 Emerging Leaders Award

Dhaliwal, an economic development and tourism specialist, was one of 12 finalists for the award celebrating young leaders in Snohomish County.

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.