New York, NY, United States (4E) – Boeing Co. increased its earnings outlook for this year amid higher third-quarter profit, spurred by a 15 percent increase in revenues from its commercial aircraft unit, according to a company report released Wednesday.
Third-quarter earnings surged 12 percent to $1.16bn, or $1.51 per share, from $1bn, or $1.35 per share, a year ago.
Adjusted per-share earnings, which exclude some pension expenses, rose 16 percent to $1.80, higher than the Street’s average estimate of $1.55.
Boeing said revenues climbed 11 percent to $22.13bn, boosted by stronger commercial airplane deliveries and topped estimates of $21.68bn
The company’s military business saw revenue rise by just 3 percent in the third quarter. Operating profit in that division dropped 19 percent due to cuts in military spending in many countries.
Boeing raised its guidance for this year’s core per-share earnings to a range of $6.50 and $6.65, compared with the previous estimate of $6.20 to $6.40 range. The company also kept its view on revenue of between $8bn and $86bn.
Despite technical problems facing Boeing’s new 787 Dreamliner, the company reported “continued strong demand” for its technologically advanced plane. The company said it plans to raise production of the Dreamliner to 12 airplanes per month from 10 by 2016, and would increase that number to 14 airplanes per month before the decade ends.