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Boeing ups outlook on 52% profit jump

Wednesday, July 23, 2014 - 01:19

Commercial aircraft deliveries rose seven percent at Boeing, prompting the aerospace company to boost full-year profit guidance, though quarterly revenues missed analyst estimates. Bobbi Rebell reports.

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Healthier airlines helping Boeing post a huge 52 percent jump in quarterly earnings, beating forecasts. The plane maker also saying it is going to make more money this year than previously expected. But revenue missed analysts' expectations for the first time in six quarters. Boeing's passenger jet business is doing really well because the airlines that buy them have seen their own business improve. Customers bought 181 jets in the past quarter, up more than seven percent from the year ago quarter. Boeing has also overcome problems facing its Dreamliner, which has overcome several setbacks caused by problems with its lithium-ion batteries, that's helped to offset a weak defense business hurt by tightened defense budgets. RBC Capital Markets Robert Stallard, though, has some concerns, especially about a charge related to the military aerial refueling planes known as tankers: "Although the headline EPS looks impressive, we think investors will look through this…The most obvious is the tanker charge of $425 million. To us, it is worrying that Boeing is booking a charge of this magnitude at a relatively early stage in this long-term program." Shares of Boeing were slightly lower early in the trading session.

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Boeing ups outlook on 52% profit jump

Wednesday, July 23, 2014 - 01:19