Boeing set to bounce back from 787 issue

City A.M. Reporter
BOEING yesterday posted a 20 per cent jump in first-quarter earnings, beating analysts’ estimates and showing little impact from the 787 Dreamliner problems.

The plane manufacturer stood by its sales and earnings forecasts for the full year, reassuring investors that it expects to deliver all of the jets it had planned, including Dreamliners.

First-quarter net income rose to $1.1bn (£720m), from $923m a year earlier, while delays to Dreamliner deliveries helped push revenues 2.5 per cent lower to $18.9bn.

The company did not release a cost estimate for the Dreamliner problems, as some analysts had expected. The Federal Aviation Administration approved Boeing’s fix for the battery system last week, and Dreamliner deliveries are set to resume shortly.

“Our outlook for the year is positive, and our financial and delivery guidance is reaffirmed as we remain focused on the profitable ramp up in commercial aeroplane production rates, disciplined execution of our development programs, and continued growth in core, adjacent and international defence and space markets,” said Boeing boss Jim McNerney in a statement yesterday.