Boeing bounces after orders for planes rise

 
Marion Dakers
SHARES in plane manufacturer Boeing ascended yesterday as the firm beat Wall Street’s forecasts on adjusted profits and revenues.

The company posted an eight per cent rise in turnover to $20.5bn (£12.2bn) for the first three months of the year, driven by demand from commercial airlines improving their fleets.

The increase was amplified by the tough quarter Boeing endured a year ago, when battery problems with the new Dreamliner 787 model kept planes grounded and customers wary.

But Boeing took $19bn of new orders during the past quarter, taking its order backlog up to a whopping $440bn, of which $374bn comes from commercial planes.

Revenues from military aircraft orders fell 13 per cent in the quarter to $3.5bn, reflecting a windfall on the new F-15 models a year ago, and revenues from Boeing’s satellite unit fell four per cent to $1.9bn.

The firm lifted its core earnings forecast yesterday to reflect a tax settlement but left the rest of its full-year results outlook unchanged. In the quarter, adjusted operating earnings rose 12 per cent to $2.1bn, though net earnings fell 13 per cent to $965m, due to pension plan changes.

“Our outlook for the full year remains positive on the strength of demand for our fuel-efficient new commercial airplanes, our solid position in global defense, space and security markets, and our enterprise focus,” said chief executive Jim McNerney.

New York-listed shares in the firm closed 2.4 per cent higher yesterday.