Boeing Commercial Airplanes reports 3rd-quarter revenue increase of 15%

Boeing reported third-quarter revenue increased 7% to $23.8bn on higher deliveries. Core earnings per share (non-GAAP) increased 19% to $2.14, driven by strong performance across the company’s businesses. Third-quarter core operating earnings (non-GAAP) increased 13% to $2.4bn from the same period of the prior year. GAAP earnings per share was $1.86 and GAAP earnings from operations was $2.1bn. Core earnings per share guidance for 2014 increased to between $8.10 and $8.30, from $7.90 to $8.10 on continued strong operating performance. GAAP earnings per share guidance for 2014 increased to between $6.90 and $7.10, from $6.85 to $7.05. Operating cash flow before pension contributions guidance increased to greater than $7bn. Commercial Airplanes operating margin guidance increased to approximately 10.5%. Boeing Commercial Airplanes third-quarter revenue increased 15% to a record $16.1bn on higher deliveries. Third-quarter operating margin was 11.2%, reflecting the dilutive impact of 787 and 747-8 deliveries and higher period costs partially offset by the delivery volume and continued strong operating performance. During the quarter, the company launched the 737 MAX 200 with a commitment from Ryanair for 100 airplanes. The 737 program has won nearly 2,300 firm orders for the 737 MAX since launch. Due to the continued strong demand for the 737 family of airplanes, the company intends to increase the 737 production rate from 42 to 47 per month in 2017, with recently announced plans to increase to 52 per month in 2018. Also during the quarter, the first GEnx-powered 787-9 Dreamliner was delivered. Commercial Airplanes booked 501 net orders during the quarter. Backlog remains strong with over 5,500 airplanes valued at a record $430bn.