BOEING Co said first-quarter profit increased 38 percent, more than expected, as the world's second-biggest plane maker delivered more aircraft and built up a record order backlog.
Profit from continuing operations rose to US$1.21 billion, or US$1.61 a share, from US$873 million, or US$1.12, a year earlier, the Chicago-based company said yesterday in a statement. Sales gained 4.1 percent to US$16 billion. The results beat the US$1.35 a share average estimate of 20 analysts in a Bloomberg survey.
Jetliner deliveries rose 8.5 percent from January through March, with almost two-thirds to overseas customers, and Boeing's commercial backlog surged to a record US$271 billion. The demand still was not enough to sustain its stock, which dropped 15 percent in the quarter on delays for the new 787 Dreamliner and the surprise loss of a US$35-billion US defense competition to a team including larger rival Airbus SAS.
"We are encouraged that they added to the backlog in the first quarter," said Eric Marshall, research director at Hodges Capital Management, in a Bloomberg Television interview.
Hodges is adding to its 330,000 shares. The 787 delays have "created an attractive opportunity for long-term investors. We think the stock could go back above US$100 over the next year."
Profit for 2009 will be US$6.80 to US$7 a share on sales of as much as US$73 billion, Boeing said in its first forecast for next year.
Analysts had predicted US$6.87 a share, up from a US$5.93 projection for this year, even after a dozen estimates were cut since the April 9 announcement of a third Dreamliner delay.
Boeing rose US$1.13, or 1.4 percent, to US$79.67 at 7:45am in trading before the regular opening of the New York Stock Exchange.
Chief Executive Officer James McNerney had held his annual forecast until yesterday to learn more about the effects of delays on the 787, which will not now enter service until next year's third quarter, 14 months late.
Boeing is counting on the aircraft, whose light carbon fibers improve fuel efficiency, to help regain the No. 1 plane maker post from Airbus.