Boeing reports high profits in Q2 2014 after strong aircraft sales
Boeing has reported high profits from April to June 2014 boosted by “strong” commercial aircraft sales.
Boeing’s net profits rose 52% to $1.65 billion from the same period last year.
During a quarter which saw the company deliver its first Dreamliner 787-9 aircraft, Boeing’s earnings from commercial aircraft operations helped to offset a fall in defense profits.
Separately, Delta Air Lines reported a 17% rise in profits thanks in part to higher fares.
Earnings from Boeing’s defense, space and security business fell 25% to $582 million, but profits from commercial aircraft rose 7% to around $1.6 billion.
Boeing boosted its full-year earnings forecast to between $7.90 and $8.10 per share, up from its previous forecast of $7.15 to $7.35 per share.
“Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year,” said Boeing CEO Jim McNerney.
Boeing’s earnings from commercial aircraft operations helped to offset a fall in defense profits
Boeing expects higher full-year profits in part due to second-quarter tax settlements totaling $408 million.
The company said commercial aircraft deliveries rose 7% to 181 in the three month period. The total included 30 Dreamliner jets.
Boeing grounded a number of aircraft last year, including the Dreamliner fleet, following two incidents where batteries caught fire.
The aircraft maker said it had a total order book worth $440 billion, with more than 5,200 orders for commercial aeroplanes.
“With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse,” Jim McNerney said.
Meanwhile, US carrier Delta Air Lines announced second quarter earnings rose 17%, to $801 million from a year ago.
Passengers flew more miles, at higher average fares, and fuel spending declined, the company said. Delta’s average fuel price was $2.93 per gallon in the quarter. The company owns its own refinery in Philadelphia.
The results from Delta come before American and United post second quarter figures on Thursday. Analysts expect the biggest US carriers to report large profits.