Boeing Q1 profit beats expectations despite 787 woes

The Boeing Co.’s first-quarter profit rose 5.3 percent and beat analysts’ estimates as increased deliveries for 777- and 737-model jets made up for the halt in buyers picking up Dreamliners while that plane was grounded.

“Commercial Airplanes worked around the clock to resolve the 787 battery issue while also successfully increasing production rates on the 737 and 777 programs,” Jim McNerney, Boeing CEO, said in a statement.

Profit excluding some pension expenses was $1.87 billion, or $1.73 a share, compared with $1.77 billion, or $1.40, a year earlier, the Chicago-based company said today in a statement. Analysts projected $1.49 a share on that basis, the average of 18 estimates compiled by Bloomberg.

Boeing delivered four more 777s and three more 737s in the quarter than a year earlier, making up for the pause in handing over 787 Dreamliners, which are less profitable in part because the program is new. The world’s largest planemaker shipped 137 commercial aircraft, matching the year-earlier tally.

“Boeing benefited from a better mix in deliveries,” said Ken Herbert, a San Francisco-based analyst with Imperial Capital LLC, in a telephone interview before the release. “Delivering those higher-margin, more-mature programs — the 737 and the 777 — was incrementally positive to the bottom line.”

Revenue fell 2.5 percent to $18.9 billion because of the drop in 787 deliveries and the effect of U.S. budget cuts on Boeing’s defense business. Analysts had predicted revenue of $18.8 billion.

Pension Expense

Since January, Boeing has used a profit measure — so- called core earnings per share — that it said gives a clearer picture by adjusting for market fluctuation in pension expenses. Without the adjustment, net income was $1.11 billion, or $1.44 a share, compared with $923 million, or $1.22, a year earlier.

The company today reaffirmed its 2013 forecast of core EPS of $6.10 to $6.30.

Boeing delivered only one Dreamliner in this year’s first three months, down from 23 in the previous quarter, after the Federal Aviation Administration grounded the plane on Jan. 16. Shipments stopped while production continued.

The FAA approved Boeing’s changes to the 787’s lithium-ion battery system to improve safety on April 19, paving the way for Dreamliner flights and deliveries to resume. The company has deployed about 300 people to install the new battery systems, which takes about five days on each plane.

More in Herald Business Journal

Amazon lists 20 finalists for HQ2, and no, we aren’t on it

Los Angeles was the only West Coast city listed. They seem to like the nation’s capital.

Strange and wonderful creatures come through door of Bothell clinic

At the Center for Bird and Exotic Animal Medicine, vets treat snakes, hedgehogs and even kangaroos.

Emirates orders 20 more Airbus A380 jumbos, saving program

The Dubai carrier also has options to buy 16 more. The program seems safe until 2029.

How do you retrieve an errant Boeing 737 from a muddy slope?

Turkish authorities used cranes to lift a plane that skidded off a runway.

Amanda Strong (left) tries on an Angel of the Winds Arena hat as she and Courtney Brown hand out gift bags after the renaming ceremony Dec. 13 in Everett. The new name replaces the Xfinity name. (Andy Bronson / Her file)
Angel of the Winds to break ground on $60M casino expansion

“We think we’re on the cusp of becoming a major resort.”

House passes bill aimed at lowering gender wage gap

The bill would hinder employers from retaliating against female workers who ask about others’ pay.

Planemaker joins forces with auto-industry supplier Adient

The new venture poses a threat to Zodiac Aerospace and Rockwell Collins

In this Dec. 20, 2017, photo, a clerk reaches to a shelf to pick an item for a customer order at the Amazon Prime warehouse, in New York. (AP Photo/Mark Lennihan, File)
Amazon’s potential HQ2 sites leaves many cities disappointed

Associated Press Amazon’s move to whittle its list for a second headquarters… Continue reading

Alaska Airlines has selected destinations for new service from Paine Field. (Alaska Airlines)
Alaska Airlines will fly from Everett to 8 West Coast cities

Two destinations that didn’t make the list were Spokane and Hawaii.

Most Read