US industry is off to a good start for 2005, with most major players reporting higher sales, profits, cashflows and backlogs for the first quarter. Only Boeing saw net income reduce, as strong operating results were eroded by charges related to disposals. Northrop Grumman's net income rose 72%.
Boeing's net income fell 14% to $535 million. First quarter revenues edged up to $13 billion, as increased sales at Integrated Defense Systems offset a decrease at Commercial Airplanes on lower aircraft deliveries. Operating margins rose in both sectors, with Boeing's launcher and satellite business returning to profitability.
Improved performance in its Space Systems business is one reason Lockheed Martin has raised its outlook for the year. Net income rose 27% to $369 million in the first quarter, on sales up slightly at $8.5 billion. Increased space and systems revenues offset a drop on lower F-16 deliveries.
Higher operating profits across all six business segments propelled Northrop Grumman's net income to $409 million for the quarter, on sales up 4% to $7.5 billion. Raytheon saw a 30% increase in net income, to $166 million, on revenues up 6% to $4.9 billion, with sales up 18% at its aircraft business.
Business jet deliveries boosted General Dynamics, where a 24% rise in sales and 53% leap in operating earnings at Gulfstream helped lift the parent company's net income by 25% to $336 million on revenues up 4% to $4.8 billion.
A 12% growth in commercial sales pushed Honeywell's aerospace revenues up 9% and contributed to a net income up 22% at $359 million on total sales up 4% to $6.5 billion. Goodrich saw net income rise 23% to $58 million on sales up 10% to $1.3 billion.
Source: Flight International
