Boeing Co. posted a quarterly profit that beat expectations, and it boosted its full year forecast, helped by a strong recovery in the commercial airplane market.
The world’s largest aerospace and defense company’s order backlog rose, especially on the commercial side of its business, helped by a surge in orders from the Middle East and Asia.
Shares of Boeing, a Dow component, gained 2 percent to $70.03 in early trade on the New York Stock Exchange.
“So far, the increase in the commercial side is more than compensating for the softening defense business,” Wedbush Securities analyst Kenneth Herbert said, referring to concerns that budget pressures will lead countries such as the United States and Europe to scale back weapons spending.
“Airlines are starting to significantly order jets again after essentially taking 18 months off,” he added.
The global airline industry has rebounded this year from the 2008 and 2009 economic downturn that drained travel demand and caused airlines to slash capacity and halt orders.
Top airlines are reporting better results this year. On Wednesday, Delta Air Lines (DAL.N) and US Airways Group (LCC.N) both reported higher-than-expected quarterly profits.
THE NUMBERS
Boeing, which competes with Airbus, said its third-quarter net profit was $837 million, or $1.12 per share, compared with a loss of $1.56 billion, or $2.23 a share a year ago.
The results beat Wall Street expectations for a profit of $1.06 per share, according to Thomson Reuters I/B/E/S.
The company increased its 2010 earnings per share forecast to between $3.80 and $4 per share, reflecting its stronger commercial airplanes business. Previously the company had predicted it would earn $3.50 to $3.80 per share in 2010.
Boeing narrowed its revenue forecast to between $64.5 billion and $65.5 billion from $64 billion to $66 billion.
The company’s order backlog rose to $321 billion in the quarter.
Revenue from the commercial airplane division rose 11 percent to $8.7 billion on higher airplane deliveries and services volume, the company said.
Boeing Commercial Airplanes booked 257 orders during the quarter while 36 orders were withdrawn. The commercial order backlog amounted to 3,401 airplanes valued at $255 billion.
