Boeing hails Saudi deal amid $1.4bn Q4 profit

US plane maker Boeing has highlighted a $29.4bn agreement to deliver fighter jets to Saudi Arabia as one of its key deals of 2011.

In announcing its fourth-quarter net income of $1.4bn, on revenue of $19.6bn, it said the company's huge fighter jet deal with the Gulf kingdom was a "major accomplishment".

Last month, the governments of the United States and Saudi Arabia signed an $29.4bn agreement to deliver Boeing-built F-15SA combat aircraft to the Royal Saudi Air Force.

The deal includes production of 84 new aircraft and the modernisation of 70 existing aircraft as well as munitions, spare parts, training, maintenance and logistics.

"Strong fourth-quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011," said Jim McNerney, Boeing chairman, president, and chief executive officer.

"Major accomplishments of our team during the year included certifying and delivering the first 787s and 747-8s... and securing a key agreement for F-15s to Saudi Arabia."    

Net income for the full year increased to $4bn on revenue of $68.7bn, Boeing said in a statement.

Boeing's 2012 revenue guidance is between $78-$80bn, it said. 

Its commercial airplanes unit's 2012 deliveries are expected to be between 585 and 600 airplanes and is sold out, it added. 

This includes an expected 70-85 787 Dreamliner and 747-8 deliveries, of which approximately half are 787 aircraft, to which Gulf airlines are key customers. 

Boeing's defence, space & security unit's revenue for 2012 is expected to be between $30-$30.5bn with operating margins greater than nine percent.

Boeing said last week it remains a contender to sell fighter jets to the UAE, after a much-awaited $10bn deal with France's Dassault hit a roadblock in November.

Paul Oliver, Boeing's vice-president for international business development for Middle East & Africa, said the company had briefed UAE officials on its F-15 and F-18 combat planes.

McNerney added: "We enter 2012 with renewed momentum, and proven business and product strategies. With a record backlog and intense focus on productivity, we are well positioned to deliver growth and increased competitiveness, even as we face constrained US defence spending and pension headwinds."