Boeing posts 61pc third quarter profit rise to US$1.1 billion

BOEING has reported its third-quarter net income increased by 61 per cent to US$1.1 billion, up from $694 million recorded in the same quarter a year ago.

Third-quarter revenues increased 12 per cent to $16.5 billion on higher commercial airplane deliveries and defence business growth, while earnings from operations rose to $1.5 billion, yielding a 9.1 per cent operating margin.

The backlog for aircraft orders has expanded to a record level of $295 billion.

As a result of the strong performance Boeing has raised its 2007 guidance for revenue, earnings per share and cash flow due to core business performance and lower corporate costs. It now expects earnings per share this year of $5.05 to $5.15.

"Our focus on growth and productivity is driving strong financial performance," said Boeing chairman, president and CEO Jim McNerney in the company statement.

"With our record backlog and healthy, growing markets, the tasks at hand are to execute our programmes, continue expanding our business base, and become more efficient."

Third-quarter operating cash flow grew to $3.3 billion on the back of increased operating earnings, continued strong commercial airplane orders, and a decrease in working capital.