BoeingBoeing (BA) turned a profit in the third quarter, reporting net income of $837 million, or $1.12 per share, beating analyst estimates of $1.06. Revenue grew 2% to $16.97 billion on higher volume in the commercial airplanes segment and strong performance across the company's core businesses, Boeing said. Analysts expected sales of $16.72 billion.

Looking ahead, the airplane maker and defense contractor increased its 2010 guidance on a strong outlook for its commercial airplanes unit. Boeing now expects full-year earnings to rise to around $3.80 to $4 per share from $3.50 to $3.80. Revenue guidance, however, was narrowed from a range of $64 billion to $66 billion to between $64.5 billion and $65.5 billion. Wall Street expectations are for EPS of $3.95 and revenue $64.5 billion.

"Our results and revised outlook reflect the continued strong performance of our commercial production and services programs and the ability of our defense businesses to produce solid results in a challenging environment," said Chairman, President and CEO Jim McNerney. "Orders were particularly encouraging, with a multi-year production contract for 124 F/A-18 aircraft and more than 200 net commercial airplane orders booked in the quarter, increasing our backlog and demonstrating improved overall market confidence."

Boeing commercial airplanes' third-quarter revenue grew 11% to $8.7 billion, on higher deliveries and services volume. For 2010, Boeing expects 460 deliveries and revenue of $31.5 billion. Boeing's Defense, Space & Security segment's third-quarter revenue declined 6% to $8.2 billion, but for 2010 the company raised the segment's forecast. Boeing Capital Corp. reported 2% higher revenue in the third quarter, but 2010 guidance was lowered.

Boeing said its order backlog grew to $321 billion, including $25 billion of new orders in the quarter.

For 2011, the company said it continues to expect revenue will be higher than 2010, although 2011 revenue estimates will be affected by the revised 787 and 747-8 delivery schedules. However, Boeing reaffirmed its plan to make its first delivery of the long-delayed 787 Dreamliner in the middle of first-quarter 2011.

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