Boeing 2Q profit falls 9.1 percent, tops expectations; 747-8 delivery may slip into 2011

Boeing 2Q profit falls; 747-8 may slip into 2011

MINNEAPOLIS — Boeing’s second-quarter profit fell 21 percent as airplane deliveries and defense revenue fell.

Its $787 million profit was bigger than analysts expected, though revenue fell more than expected. Boeing said revenue will rise next year as it delivers its new 787 and 747-8.

Boeing delivered 114 commercial aircraft during second quarter, down from 125 a year earlier. The recession was one factor. Another was problems with a seat manufacturer in Japan, which delayed some deliveries.

Boeing shares fell $1.44, or 2.1 percent, to $67.18 in morning trading.

The second-quarter profit was down from $998 million a year earlier. Revenue fell 9.1 percent to $15.57 billion, from $17.15 billion a year earlier. The profit worked out to $1.06 per share, 5 cents more than expected by analysts surveyed by Thomson Reuters. However, Boeing’s revenue fell short of expectations for $16.13 billion.

Commercial airplane revenue fell 12 percent to $7.4 billion, with operating profits down 16 percent to $683 million. Deliveries of its biggest jets fell, and Boeing had problems with a seat supplier.

Defense revenue fell 8 percent to $7.98 billion, with profits down 19 percent to $711 million. The revenue drop-off was mostly because of its space unit.

The company left its 2010 revenue and profit guidance unchanged, although that was partly because it cut capital spending plans by $200 million. It said it still expects to deliver 460 to 465 commercial airplanes this year, including the first few 787s and 747-8s.

Boeing said 2011 revenue should rise as it delivers those planes. It said its new planes for this year are sold out. And it booked $12.8 billion in future aircraft orders or commitments at the Farnborough International Airshow last week.

“With our commercial markets recovering, and the priorities of our government customers gaining clarity, we remain well positioned for growth in 2011 and beyond,” Chairman and CEO Jim McNerney said in a prepared statement.

Boeing also said on Wednesday that the first delivery of its new 747-8 may slip into early next year. The plane is a longer, revamped version of Boeing’s big, 40-year-old jumbo jet. Four of them are in flight testing, and Boeing is still working toward delivering it by the end of this year, but “there is increasing pressure on that schedule,” it said.

It had already said the same thing about its new 787, a midsize plane made of composite materials that has been in high demand for its fuel efficiency but is running more than two years late. It has hoped to deliver both planes by the end of this year. A delay of the 747-8 isn’t a huge surprise, but Boeing could have to pay penalties to customers if the delays are too extensive.