Boeing Earnings Jump 12% on Strong Revenue Growth; Guidance Raised
Boeingannounced [link opens in PDF] earnings today that were up from $1.35 in the third quarter of 2012 to $1.51 per share in the third quarter of 2013. The $0.16 jump amounts to nearly 12%.
Its total Q3 earnings were up to $1.8 billion from $1.6 billion a year ago. Revenue was up 11% from $20 billion to $22.1 billion, driven by strong performance from its commercial airplanes division.
In addition, for the second quarter in a row, Boeing raised its full-year earnings per share guidance. It's now looking for between $5.40 and $5.55 per share. It began the year with EPS guidance of $5.00-$5.20 per share and subsequently raised it to $5.10-$5.30 after reporting second-quarter earnings.
Looking at Boeing's earnings after excluding for one-time items and pension contributions, results were even better, as it watched its core operating earnings increase from $1.8 billion to $2.1 billion, an increase of almost 20%. In addition, its earnings per share grew from $1.55 to $1.80, a boost of 16%.
"Consistently strong operating performance is driving higher earnings, revenue and cash flow as we deliver on our record backlog and return increased value to shareholders," said Boeing CEO Jim McNerney in a statement.
Boeing had $27 billion in net orders in the third quarter, and its backlog of orders grew to a record $415 billion, up from $410 billion at the beginning of the quarter. Boeing also watched its operating cash flow before pension contributions in the most recent quarter skyrocket from $2.4 billion to $4.3 billion, a jump of 84%.
Profits from commercial planes rose 40%, offsetting a 19% profit drop in Boeing's defense division because of a sharp decline in deliveries of military planes.
McNerney noted, "Despite the uncertainty of the U.S. defense market, overall our customer-focused business strategies and disciplined execution on our programs are producing the results we expect, and our strong year-to-date performance and positive outlook allow us to increase our 2013 guidance for earnings and operating cash flow."
-- Material from The Associated Press was used in this report.link
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