Boeing has raised its revenue and earnings outlook after posting strong results for the first quarter. In addition to expecting continued growth in defence sales, Boeing is now projecting deliveries of 300 commercial aircraft in 2005, up from 285 this year and from its previous forecast for a similar delivery level next year.
First-quarter revenues increased 6% to just under $13 billion, while the net income of $623 million compares with a $478 million net loss for the same period last year. The first-quarter 2003 loss was the result of goodwill impairment charges totalling almost $1 billion, but excluding the charges, earnings from operations jumped 54% to $838 million. The first-quarter results "reflect our drive to improve profitability", says chief executive Harry Stonecipher.
Revenues rose 18% to $7.42 billion at Integrated Defense Systems (IDS), but fell 6% to $5.33 billion at Boeing Commercial Airplanes, which delivered more aircraft than a year earlier but a greater proportion of single-aisle jets. Within IDS, the revenue growth was highest at Network Systems (27%) and Launch & Orbital Systems (23%), but the latter still made an operating loss.
Citing continued defence growth and early signs of a commercial recovery, Boeing has raised its revenue forecast for next year from $55-57 billion to $57-59 billion, compared with the $52 billion expected this year.
Lockheed Martin has also raised its outlook after posting an increase of 18% in revenues and 16% in net income for the first quarter. A 38% increase in sales by the Aeronautics sector, on higher C-130J and F-16 deliveries and F-35 volume, boosted first-quarter revenues to $8.3 billion, while improved margins pushed net income up to $291 million. As a result, Lockheed has raised its revenue forecast for 2004 by $300 million to $33.8-34.8 billion.
Raytheon's revenues were up 11% to $4.7 billion in the first quarter, and net income rose almost 35% to $128 million despite higher pension charges. Sales at the Integrated Defense Systems unit rose 28% and Raytheon Aircraft saw a 4% improvement, which helped narrow its operating loss.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
