CHICAGO - Boeing Co. on Wednesday reported a 14-percent drop in first-quarter profit from a year ago, but the world's largest aerospace group held to its outlook for commercial airplane deliveries in 2005 and 2006.
The profit for the first three months of 2005 amounted to 535 million dollars, or 66 cents a share.
Although the company had several one-time items that affected the results, the profit was higher than the 55 cents per share expected on Wall Street.
Revenue for the quarter totaled 12.99 billion dollars, up one percent from last year's figure but lower than the average Wall Street forecast of 13.28 billion.
The results do not reflect big orders received this week for new jetliners by Air India and Air Canada.
Boeing said its delivery targets for 2005 of 320 airplanes and for 2006 of 375 to 385 airplanes are unchanged.
But its commercial aircraft unit's sales fell five percent to 5.08 billion dollars while earnings rose 11 percent to 389 million. Boeing delivered 70 airplanes in the quarter, down from 76 in the first quarter of 2004.
The integrated defense systems group's revenue totaled 7.54 billion dollars, up from 7.42 billion a year earlier, while earnings rose 15 percent to 847 million.
Boeing said growth at its integrated defense systems segment and commercial airplane unit would generate 2005 revenue of about 58 billion dollars. Earnings would be 2.40 to 2.60 dollars a share in 2005, in line with most forecasts.
The first three months of they year could hardly have been more eventful for Boeing. Right after the triumph of the Air Force's lifting a rocket launch bidding ban in March, the company's chief executive Harry Stonecipher stepped down over an affair with a female executive. Still, shares held their ground and are up about 15 percent this year.
"First-quarter results reflect continued strong operational and financial performance across our businesses and demonstrate that the 160,000 people of Boeing remain keenly focused on delivering value to customers and shareholders," said Boeing president and CEO James Bell.
"I am pleased that the entire Boeing team remains focused on business execution, demonstrating our commitment to integrity and growing the business."
04/27/2005 14:08 GMT