Boeing (BA) reported Wednesday that its second-quarter earnings fell 21% as revenue dropped 9%. While earnings topped Street estimates, revenue missed the mark. Shares declined 1.9% in morning trading.
The airplane manufacturer said net income in the quarter was $787 million, or $1.06 per share, down from $998 million, or $1.41 per share, in the same quarter a year ago. Revenue fell to $15.6 billion from $17.1 billion. Analysts had expected earnings of $1.01 per share on revenue of $16.5 billion.
Boeing said the results reflect solid performance across the company's core businesses on lower volumes. "Continued strong results from our major businesses drove another solid quarter of operational performance for the company," said Chairman and CEO Jim McNerney. "We are making progress on key commercial and military development programs, our production programs and services businesses are running well, and our enterprise focus on productivity improvement is funding investment in growth while maintaining our financial strength."
The company also reaffirmed its 2010 revenue, earnings per share and operating cash flow outlook. For 2010 Boeing still expected earnings per share in the range of $3.50-$3.80 on revenues of $64 billion to $66 billion. Consensus estimates for 2010 call for earnings of $3.86 per share on revenue of $64.99 billion.
The company continues to expect that 2011 revenue will be higher than 2010, primarily driven by projected 787 and 747-8 deliveries.
McNerney added, "With our commercial markets recovering, and the priorities of our government customers gaining clarity, we remain well positioned for growth in 2011 and beyond."
Regarding the Boeing 787 Dreamliner, the company said the program continued flight test during the quarter, as a fifth airplane joined the four airplanes already in the flight test program. The Dreamliner completed key flight test milestones, including extreme weather, icing and cruise performance testing, the company said. Total firm orders for the 787 program at quarter-end were 863 airplanes from 56 customers.
Boeing still plans first delivery for the end of this year, although it said that initial delivery may move a few weeks. As for the 747-8 program, Boeing said first delivery may move from fourth quarter of 2010 into early 2011.
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