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Boeing Net Income Drops 15%

The company beat estimates but said aircraft deliveries slowed in the first quarter.
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said net income fell by 15% as commercial aircraft deliveries slowed in the first quarter. The company beat analyst estimates but offered full-year guidance below estimates.

First-quarter net income was $519 million, or 70 cents a share. Analysts surveyed by Thomson Reuters had estimated 64 cents. Revenue fell 8% to $15.2 billion, in line with estimates.

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The results include a charge of 20 cents a share resulting from the new health care law. In the same quarter a year earlier, the company earned $610 million, or 86 cents a share, after a one-time charge of 31 cents a share.

"With clear progress on the 787 and 747-8, solid financial performance and marked improvement in our customer outlook, we continue to draw on the positive momentum we saw at the end of 2009," said CEO Jim McNerney in a prepared statement. "Our outlook remains attractive."

>> Who Owns Boeing?: Atticus Capital

Airplane deliveries fell to 108 from 121, as the company made fewer 747 deliveries than it had planned and faced seat supplier challenges. Still, the operating margin at Boeing Commercial Aircraft increased by 9.1% due to stronger operating performance.

Looking ahead, Boeing guided to full-year 2010 earnings per share of $3.50 to $3.80 a share, including charges for health care legislation, with revenue between $64 billion and $66 billion. Analysts were estimating $3.84 a share on revenue of $65 million. This year, Boeing expects to deliver 460 to 465 commercial aircraft, including the first 787 and 747-8 aircraft.

-- Written by Ted Reed in Charlotte, N.C.