The Boeing Company on Wednesday announced that it recorded a 2 percent increase in third quarter revenues, earning $16.96 billion better than analysts’ expectations of $16.72 billion.
The company posted earnings for the third quarter of $837 million or $1.12 a share, compared to a loss of $1.56 billion or $2.23 a share last year.
These results reflect higher Commercial Airplanes volume and strong performance across the company’s core business. Revenue guidance was narrowed to between $64.5 billion and $65.5 billion.
“Our results and revised outlook reflect the continued strong performance of our commercial production and services programs and the ability of our defense businesses to produce solid results in a challenging environment,” said Jim McNerney, Boeing chairman.
Commercial Airplanes recorded 257 gross orders during the period while 36 orders were removed. Despite this, the amount represents a huge increment on the 79 orders booked in 2009. As a result, Commercial Airplanes third-quarter revenue was $8.7 billion, an 11 percent increase from last year.
During the quarter, a series of tests were performed on the 787 program. The sixth, and final test, was made on October 4. Boeing said that the first delivery of the 787 was expected for the end of the year, but the date has been pushed back to mid-first quarter 2011. Boeing has orders for 847 of these airplanes from 55 customers.
Boeing Defense, Space & Security’s (BDS) third-quarter revenue fell 6 percent to $8.12 billion. This was caused by decreases in military aircraft and network & space systems of 5 percent and 14 percent respectively.
The decline was driven by fewer deliveries and a less favorable mix on the C-17 program, lower volume on Brigade Combat Team Modernization (BCTM) and Ground-based Midcourse Defense (GMD).
Overall, the company still expects that 2011 revenue will be higher than 2010, although 2011 revenue estimates will be impacted by the revised 787 and 747-8 delivery schedules. Operating cash flow guidance is now expected to be more than $4 billion.
