3Q earnings fall 31 percent on charge for unplugging in-flight Internet service AP Online, Wednesday, October 25, 2006 at 07:09
CHICAGO, Oct 25, 2006 (AP Worldstream via COMTEX News Network) --
Boeing Co., the No. 2 commercial airplane maker behind Airbus SAS, said Wednesday its third-quarter earnings fell 31 percent, hurt by a hefty charge for pulling the plug on in-flight Internet service Connexion.
But higher jet sales helped the company's revenues jump 19 percent, and it raised its guidance for 2007 earnings.
Net earnings for the July-through-September period were $694 million (?553.38 million), or 89 cents per share, down from $1.01 billion, or $1.26 per share, a year earlier. Revenues rose to $14.7 billion (?11.72 billion) from $12.4 billion.
Results included a charge of $280 million (?223.27 million), or 22 cents per share, to exit the Connexion business. Excluding that, Boeing said its adjusted earnings were $1.11 per share.
Analysts surveyed by Thomson Financial had expected, on average, profit of 63 cents per share on revenue of $15.07 billion (?12.02 billion).
Boeing increased its estimate for 2007 earnings by 20 cents per share to between $4.45 and $4.65, citing the discontinuation of its Connexion investment, contributions from its recent $1.7 billion acquisition of aircraft spare parts distributor Aviall Inc. and additional performance improvements.
It also raised its forecast for 2007 revenue to $65.5 billion (?52.23 billion) to $66 billion (?52.63 billion), up from the previous guidance of $64.5 billion to $65.5 billion.
Buoyed by the strong reception for its more fuel-efficient 787 jet, due out in 2008, Boeing has won three times as many orders so far this year than Airbus, after five straight years finishing as the runnerup. The Chicago-based aerospace company has benefited from the struggles of its European rival, which recently announced a second year of delays with its A380 superjumbo.
Boeing delivered 100 commercial airplanes in the third quarter, its highest total since 2002 and up 61 percent from a year ago. The company reiterated its expectation to deliver 395 planes in 2006, up 36 percent from last year, and 440 to 445 in 2007.
Shares in the company closed trading Tuesday at $83.59, up 24 percent in the past year.
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