WASHINGTON (AFP) - US aerospace giant Boeing reported Wednesday record profits in 2007 and raised its outlook for 2008, saying productivity gains would offset delays in its 787 Dreamliner program.
Full-year net profit soared 84 percent to a record 4.07 billion dollars, despite virtually flat sales in the fourth quarter.
However, the company warned that delays in its new 787 Dreamliner program would weigh on sales and cash flow in 2008.
For the full year 2007, adjusted earnings per share (EPS) were 5.28 dollars, driven in part by higher commercial aircraft deliveries, strong growth in defense earnings and productivity gains, Boeing said.
That compared with 2006 net profit of 2.2 billion dollars or 2.85 dollars per share.
Boeing said that fourth-quarter net profit rose four percent to 1.03 billion dollars from the same period in 2006, with earnings per share at 1.36 dollars. In 2006, profit was 989 million dollars, or 1.29 dollars a share.
The results exceeded analysts' consensus forecast for earnings per share of 5.22 dollars for 2007 and 1.32 dollars in the fourth quarter.
"Our 2007 results demonstrate the kind of quality financial performance we can achieve through our simultaneous focus on growth and productivity," said Jim McNerney, chairman, president and chief executive of the Chicago-based firm.
Boeing reported essentially flat revenue in the three months ended December 31. Sales rose to 17.48 billion dollars from 17.54 billion in the same period a year earlier.
The Dow component, citing earlier than expected productivity gains, lifted its outlook for fiscal 2008 to earnings of 5.70-5.85 dollars a share, from 5.55-5.75 dollars, "despite some development program challenges."
However, the company lowered its revenue outlook for 2008, to a range of 67-68 billion dollars, reflecting a previously disclosed delay in its new 787 Dreamliner program. The prior forecast was for revenue of 67.5-68.5 billion dollars.
For the same reason it also slashed the 2008 cash flow outlook to more than 2.5 billion dollars from more than three billion.
"Boeing continues to address challenges associated with assembly of the first airplanes, including start-up issues in our factory and in our extended global supply chain," it said.
The company reconfirmed the revised 787 Dreamliner timetable announced in mid-January: a first flight around the end of the second quarter, with deliveries to begin in early 2009.
Because of these delays, Boeing said, it expects to deliver between 475 and 480 commercial planes in 2008, lowering its previous estimate of 480-490 aircraft.
The company said the outlook for its defense business and in-production commercial airplane programs remains "very strong" for 2009.
In 2007, revenue of Boeing Commercial Airplanes rose 17 percent to 33.38 billion dollars, as the division delivered 441 aircraft, up from 398 in 2006.
Boeing Integrated Defense Systems booked revenue of 32.08 billion dollars, down one percent from 2006.
Boeing said its total company backlog as of December 31 stood at a record 327 billion dollars, up 31 percent year-over-year.
"The continued strength in Boeing's backlog bodes well for earnings stability in the commercial airplane business for several years," Lehman Brothers analysts wrote in a note to clients.
Investors cheered the results, pushing Boeing shares up 2.95 percent to 83.35 dollars around 1945 GMT in New York trade.
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