Boeing profits from sales boost

Boeing 737 over Hanover airport

Boeing's profits from April to June were boosted by a "strong" commercial aircraft sales, the company has said.

Net profits rose 52% to $1.65bn (£1bn) from the same period last year.

During a quarter which saw the firm deliver its first Dreamliner 787-9 aircraft, Boeing's earnings from commercial aircraft operations helped to offset a fall in defence profits.

Separately, US airline giant Delta reported a 17% rise in profits thanks in part to higher fares.

Tax boost

Earnings from Boeing's defence, space and security business fell 25% to $582m, but profits from commercial aircraft rose 7% to around $1.6bn.

The company boosted its full-year earnings forecast to between $7.90 and $8.10 per share, up from its previous forecast of $7.15 to $7.35 per share.

"Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year," said Boeing chief executive Jim McNerney.

The firm expects higher full-year profits in part due to second-quarter tax settlements totalling $408m.

Jumbo deliveries

Boeing said commercial aircraft deliveries rose 7% to 181 in the three month period. The total included 30 Dreamliner jets.

Boeing grounded a number of aircraft last year, including the Dreamliner fleet, following two incidents where batteries caught fire.

The firm said it had a total order book worth $440bn, with more than 5,200 orders for commercial aeroplanes.

"With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse," Mr McNerney said.

Delta profits soar

Meanwhile, US carrier Delta Air Lines announced second quarter earnings rose 17%, to $801m from a year ago.

Passengers flew more miles, at higher average fares, and fuel spending declined, the firm said. Delta's average fuel price was $2.93 per gallon in the quarter. The company owns its own refinery in Philadelphia.

The results from Delta come before American and United post second quarter figures on Thursday. Analysts expect the biggest US carriers to report large profits.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Business Live

  1.  
    06:16: Markets Radio 5 live

    Brenda Kelly from IG is Wake Up to Money's markets guest. They are talking about the falling oil prices. "A lot of it is down to a glut of supply and Saudi Arabia wants to keep market share," she says. Saudi's breakeven price is only a few dollars per barrel.

     
  2.  
    06:10: Christmas spending Radio 5 live

    Mark Barnett, UK & Ireland president of Mastercard, is on Wake Up to Money, talking about Christmas shopping habits. What else? People have returned to luxury goods, he said. Holidays and furniture are down a little bit though.

     
  3.  
    06:04: Hacking 2.0
    Kim Jong

    The global cyberwar that dominated headlines last week shows no signs of abating. Hackers have infiltrated South Korea's nuclear power provider, and posted schematics of nuclear reactors and private personal records online. It's not clear whether the same group that attacked Sony Pictures is responsible.

     
  4.  
    06:00: Howard Mustoe Business reporter

    Morning! Get in touch. Tell us what you think. Email bizlivepage@bbc.co.uk or on Twitter @BBCBusiness

     
  5.  
    06:00: Joe Miller Business Reporter

    Good morning, and festive greetings all round. In a week when the business world is winding down for Christmas, we'll bring you all the news that's sneaking in the back door, and much more besides.

     

Features

From BBC Capital

Programmes

  • (File photo) A man dressed as Father Christmas with a sleigh and a reindeer Click Watch

    A website which tracks Father Christmas, plus other sites and apps to keep you entertained

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.