Boeing's Profit Trails Estimates

Net income also falls from a year ago as the company cuts its output of commercial planes.

Author:: TSC Staff
Publish date:: Apr 17, 2002 9:31 AM EDT

Boeing

said first-quarter profit fell from a year ago and missed estimates as the company struggled with changing realities among its airline customers.

Before various charges, the company earned $602 million, or 75 cents a share, in the latest quarter. The company recorded goodwill charges of $1.8 billion. The average estimate of analysts polled by First Call was for earnings of 85 cents a share. Revenue was $13.82 billion, about even with estimates and up from $13.29 billion last year. The company earned $761 million, or 89 cents a share, last year.

Boeing's commercial operations had revenue of $8.3 billion, unchanged from a year ago, and operating earnings of $1 billion. Military aircraft and missiles had revenue of $3 billion, up from $2.4 billion last year. Space and communications had revenue of $3.2 billion, up slightly from a year ago.

The company is in the process of reducing its production of commercial aircraft in the wake of Sept. 11 and the subsequent decline in airline travel. Boeing said the outlook for commercial airplanes deliveries remains unchanged at about 380 airplanes in 2002 and between 275 and 300 airplanes in 2003, adding that the "market for twin-aisle airplanes remains a near-term watch item and has the potential to impact the mix of 2003 deliveries."

Boeing left 2002 revenue guidance unchanged at about $54 billion. For 2003, it expects revenue of about $52 billion as growth in space and defense partially offset revenue declines from fewer commercial airplane deliveries.