Boeing profits up 161 percent

Published 9:00 pm Wednesday, February 2, 2005

The Boeing Co.’s full-year profits surged, but the company took a beating in the fourth quarter as it wrote off losses from its failed 767 tanker deal and decision to stop building 717s.

However, the company predicted a quick rebound, saying it expects revenue to increase by nearly $10 billion over the next two years.

The news pleased investors. Shares of Boeing stock closed Wednesday at $52.23, up $1.19.

Boeing said Wednesday its 2004 year-end profit jumped 161 percent, to nearly $1.9 billion, or $2.30 a share. Revenue increased 4 percent, to almost $52.5 billion.

By comparison, Boeing ended 2003 with a profit of $718 million, or 89 cents a share, on revenue of close to $50.3 billion.

Fourth-quarter profits fell, however, as the company wrote off a $280 million charge connected to the 717 shutdown and a $195 million loss on the proposed deal to build 100 767 tankers for the U.S. Air Force.

With the charges, Boeing’s fourth-quarter profits fell 84 percent to $186 million, or 23 cents a share. Revenue was up 1 percent for the quarter, to $13.3 billion.

Boeing had a profit of more than $1.1 billion, or $1.40 a share, in the fourth quarter of 2003, on revenue of just under $13.2 billion.

Boeing’s defense and space unit drove revenues during the year and the quarter. The Integrated Defense Systems group earned $2.9 billion on sales of $30.5 billion for the year.

Boeing Commercial Airplanes had revenue of just over $21 billion for the year, down 6 percent compared with 2003, which chief financial officer James Bell said was the result of the company delivering more lower-cost, single-aisle planes in 2004. Commercial Airplanes’ operating earnings increased 7 percent for the year, to $753 million.

Boeing increased its revenue projection for the next two years. The company said it expects to bring in about $58 billion this year, and between $62 billion and $63 billion in 2006.