Boeing expects to add almost $10 billion to its bottom line within the next two years as it continues to benefit from a boom in commercial aircraft sales and an ongoing productivity drive.
The forecast comes as the US manufacturer reports a 37% year-on-year rise in 2005’s net profit to $2.57 billion. Fourth quarter figures showed net income more than doubling compared with the same period in 2004, to $460 million.
During 2005 the manufacturer increased its order backlog to an unprecedented $202 billion, a 33% improvement on the backlog reported at the end of 2004. Of this backlog, 388 aircraft worth $124 billion are commercial, an 89% increase year-on-year and a 37% improvement on the commercial backlog posted at the end of the third quarter.
“Our results and improved outlook reflect a strong commitment to growth, expanding margins and improving how we do business every day,” says chief executive officer Jim McNerney.
Based on this, the company is forecasting “solid growth” in 2006 and 2007. This year’s revenue is expected to be around $60 billion, which is lower than previous estimates due to an accounting change that transfers concession repayments from revenue to expenses, the company says.
DARREN SHANNON / WASHINGTON, DC
Source: Flight International
