Boeing Co. saw its revenues jump by 21 percent in the second quarter on the strength of higher aircraft deliveries, but its profits rose only by three percent, the company reported this morning.
That performance, however, handily beat Wall Street estimates for the company’s profits. Analysts had predicted earnings of $1.12 a share. The company delivered $1.27 a share. Wall Street had anticipated revenues of $19.4 billion. The company produced $20 billion.
Boeing Chairman Jim McNerney predicted full-year profits of $4.40 to $4.60 a share compared with $4.15 to $4.35 a share the company had estimated earlier this year.
“Increased revenues and strong operating performance across both our major businesses drove significantly improved first-half 2012 results for Boeing,” said McNerney.
Boeing continued to predict it will deliver 585 to 600 commercial aircraft this year, the highest in recent years. Boeing expects to deliver some of its carbon fiber 787 that have been in post-production modifications.
The company now is producing 787 aircraft from its assembly lines that are essentially complete as they roll out the factory door.
The company has seen robust orders this year for its commercial aircraft this year with more than 600 orders recorded in the first half. Those orders have been led by the popular 737, built in Renton.
“Our book-to-build ratio this year is already well above one,” said McNerney.
The company is raising production on all of its jetliner lines to keep up with order demands.
Boeing’s earnings failed to keep pace with revenue increases in part because of higher pension expenses, the company said. Those expenses rose by 52 percent in the quarter.