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EVERETT, Wash. (


) --


(BA) - Get Boeing Company Report

said fourth-quarter net income fell 8% as aircraft deliveries fell below expectations and defense spending dropped.

Excluding items, the aircraft maker earned $1.11 a share. Analysts surveyed by Thomson Reuters had estimated $1.12 a share. Revenue declined 8% to $16.6 billion; analysts had estimated $17 billion.

With items including a favorable non-cash tax settlement of 50 cents a share and a one-time contribution to a charitable trust of 5 cents a share, fourth-quarter net income totaled $1.2 billion, or $1.56 a share, a drop of 8%.

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Looking ahead, Boeing guided to 2011 earnings of between $3.80 to $4 a share. Analysts estimate earnings of $4.55 a share. The company's estimate includes pension expense of $1.58 a share, up from 58 cents a share in 2010. Excluding pension expense and tax adjustments, Boeing said EPS will increase about 6%. The company guided to revenue between $68 billion and $71 billion. Analysts forecast $70 billion.

During the quarter, Boeing's quarterly operating cash flow was $1.1 billion, down from $3.2 billion in the same quarter a year earlier. Free cash flow was $716 million, down from $3 billion. Quarterly revenue for Boeing Commercial Airplanes fell 11% to $8.2 billion on lower 777 and 747 deliveries. For the full year, revenue fell by 7%.

However, BCA booked 158 net orders during the quarter, up from 62 net orders in the same period a year earlier. In 2011, the division expects to deliver between 485 and 500 airplanes, including combined 787 and 747-800 deliveries totaling 25 to 40 units.

Meanwhile, Boeing Defense, Space & Security's fourth-quarter revenue fell 4% to $8.2 billion.

"Boeing delivered strong operating performance and exceptional cash generation from core production and services businesses in 2010, which helped mitigate the impact of development program challenges," said CEO Jim McNerney, in a prepared statement.

In premarket trading shortly after its 7:30 a.m. earnings release, Boeing shares were trading at $70.47, down 2% from a Tuesday close of $72.24.

-- Written by Ted Reed in Charlotte

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Ted Reed