Boeing's Q4 profit beats market expectations
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E-mail Xinhua, January 31, 2013
Chicago-based aerospace giant Boeing Co. announced on Wednesday that its profit in the fourth quarter of 2012 reached 1.28 dollars per share, beating market expectations of 1.19 dollars per share,The Chicago Tribune reported.
The company's Q4 revenue was 22.3 billion dollars, up 14 percent from the previous year but slightly below market expectations of 22.36 billion dollars. For the full year of 2012, Boeing's revenue rose 18 percent but profit dropped 3 percent from 2011.
Boeing also said on Wednesday that it will begin reporting " core operating earnings" numbers along with traditional earnings numbers. By that measure, Boeing's fourth-quarter core operating earnings increased 9 percent to 1.8 billion dollars.
Boeing now has grounded its 787 Dreamliner aircraft amid investigations in the United States and Japan for battery issues, but it said that any expense related to the investigations and grounding was not reflected in Wednesday's earnings announcement. The company assumed that there would be "no significant financial impact."
The U.S. National Transportation Safety Board is investigating a Dreamliner battery fire in Boston on Jan. 7. That fire, along with a subsequent 787 battery problem in Japan, led to groundings of Boeing's breakthrough plane model in the United States and elsewhere.
As investigators have not found a cause for the battery problems yet, the grounded Dreamliners, including six owned by Chicago-based United Airlines, are unlikely to come back to traffic anytime soon.
Boeing is building five Dreamliners a month at present, with each carrying a list price of 207 million dollars. Due to the battery problem, the company has halted deliveries of newly- produced 787s until the Federal Aviation Administration lifts a ban on flying the jets.
"Our first order of business in 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers," Boeing CEO Jim McNerney said in a statement.
Nevertheless, Boeing's business remains unaffected by the 787 problems. The airplane giant is still producing huge numbers of planes, and has orders to last another seven years at current production rate.
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