Boeing Raises Outlook as Profits Decrease
Boeing reported a decrease of 7% in its second-quarter profits, but this was higher than analysts expected. The company raised its earnings outlook for the entire year.
Boeing’s earnings for the second quarter were $566 million, or 70 cents per share compared to $607 million, or 75 cents a share for the same quarter last year. Part of last year’s earnings included a 23 cents-a-share tax-refund benefit.
The company’s inspiration for raising its outlook comes at least in part from seeing improvement in overseas demand, and strong U.S. defense spending. AP reports:
Excluding a 9-cent charge related to the sale of commercial airplane facilities in Wichita, Kan., and Tulsa, Okla., earnings from continuing operations in the latest quarter were 79 cents per share. The average estimate of analysts polled by Thomson Financial was 61 cents a share.
Boeing upped its financial outlook for 2005 from a range of $2.40 to $2.60 a share to $2.75 to $2.85 a share, reflecting “stronger operating margins across Boeing’s core businesses.”
Boeing’s second-quarter sales jumped 15% as it delivered more expensive aircrafts. This is the biggest jump in sales that the company has had in nearly four years.
“They’ve been recording a large number of orders,” said Paul Nisbet, president of JSA Research. “They are really on a tear and will probably set a record.”
Boeing shares, which are a component of the Dow Jones Industrial Average, went up 30 cents yesterday reaching $66.35 according to MarketWatch. They are up 28% for the year.