Boeing to Increase 787 Production to 12 a Month in 2016

Japan Boeing 787 (A Boeing 787 of All Nippon Airways lands after a test flight at Haneda International Airport  in Tokyo, Sunday
Shizuo Kambayashi/AP

Boeing says it plans to increase production of the 787 Dreamliner to 12 aircraft a month in 2016, up from a target of 10 a month by the end of 2013.

The company said Wednesday it plans to further ramp up the production rate of its newest, high-tech plane to 14 a month before the end of the decade. Rising production allows the company to book more revenue and increases its cash flow.

The forecast came as Boeing (BA) posted results that exceeded expectations, largely on rising commercial aircraft production, sending its stock up more than 3 percent in pre-market trading.

Boeing reported a 12 percent jump in per-share profit and raised its full-year forecast, sending its shares up more than 3 percent in premarket trading.

Net income rose to $1.51 a share from $1.35 a year ago as revenue increased 11 percent to $22.13 billion, the company said Wednesday. The gain came largely from a 14 percent surge in aircraft deliveries. Core earnings, which exclude some pension and other costs, jumped 16 percent to $1.80 a share from $1.55.

Boeing raised its full-year core earnings forecast to $6.50 and $6.65 a share from a previous outlook of $6.20 to $6.40. %VIRTUAL-article-sponsoredlinks%It also lifted the forecast for unadjusted 2013 earnings to $5.40 to $5.55 a share from $5.10 to $5.30.

It left unchanged its full-year revenue forecast at between $83 billion and $86 billion, and its target for delivering between 635 and 645 commercial aircraft for the full year.

In the first nine months, Boeing delivered 476 planes, including 170 in the latest quarter. That means it needs to deliver 169 in the fourth quarter to hit the top end of its target.

The stock rose to $126.50 in premarket trading from a close Tuesday of $122.48 in New York.


Originally published