Boeing's Q1 profit climbs, revenue drops
Boeing (NYSE:BA) reported Wednesday that first quarter net income rose 13%, despite revenue falling slightly.
For the first three months of 2011, the aerospace and defense giant posted net income of $586 million, or $0.78 per share, compared to $519 million, or $0.70 per share, in the year ago period.
The company said the higher bottom line was due to production improvements and reduced flow times in core operations.
Still, revenue dropped 2% to $14.9 billion, as Boeing's commercial airplane segment saw a 5% decline in revenue on lower planned 777 deliveries. Backlog in the unit stood strong at more than 3,400 airplanes valued at $263 billion.
The company delivered 104 commercial airplanes during the quarter, compared to 108 in the prior year period.
Boeing's defense, space and security division had flat revenues in the quarter at $7.6 billion, as greater military aircraft deliveries were offset by lower revenues in other areas.
The company re-affirmed its 2011 outlook, as well as the long-delayed 787 program, which is still on track for first delivery in the third quarter. Total firm orders for the 787 at quarter-end were 835 airplanes.
Total company backlog at the end of March was $329 billion, up from $321 billion at year-end 2010, and included orders of $23 billion from the first quarter.
Looking ahead, Boeing said it expects earnings per share in the range of $3.80 to $4.00 per share in 2011, on revenue between $68 to $71 billion.
The company's shares were up 1% near market close on Wednesday at $76.29, climbing as high as $77.30 in early morning trading.
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