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Wed 27 Apr 2011 09:38 PM

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Boeing posts 13% rise in Q1 net profit

World's largest aerospace and defence firm says backlog is $329bn, up 2.5% from a year earlier

Boeing posts 13% rise in Q1 net profit
Boeing

Boeing's quarterly
profit rose 13 percent, topping expectations, and the company
reaffirmed a full-year outlook that reflects a rebound in
commercial airplane orders and resilience in the face of
pressured defense budgets.

The world's largest aerospace and defence company said its
backlog was $329 billion, up 2.5 percent from a year earlier,
and its shares rose 1.3 percent in morning trading.

"(Boeing Commercial Airplanes) is still well placed, with
production rates heading higher, strong order inflow and no
further blow-ups this quarter on its development programs," RBC
Capital Markets analyst Robert Stallard said in a research
note.

"Defence has taken its program cancellation lumps already,
and we expect its revenues and margins to be steady going
forward. If Boeing can avoid execution pitfalls, we think it is
well placed to progress," he said.

Boeing's first-quarter profit was $586 million, or 78 cents
per share, topping analysts' average forecast of 70 cents a
share, according to Thomson Reuters.

In the year-earlier quarter Boeing earned $519 million, or
70 cents per share, after a charge of 20 cents per share
related to healthcare legislation. Revenue slipped 2 percent to $14.9 billion.

"I think people are getting comfortable with the valuation,
and people are getting comfortable with the recovery," said
Alex Hamilton, managing director of EarlyBirdCapital.

"What is clear is that this recovery is ongoing," he said.

Boeing stood by its full-year 2011 outlook. It expects
revenue of $68 billion to $71 billion and earnings per share of
$3.80 to $4.

Boeing, which competes with EADS unit Airbus,
splits its business almost evenly between commercial airplanes
and defense products. But its stock tends to track commercial
airplane orders and deliveries more closely.

The commercial airplane industry is recovering from a
global economic downturn that saw cash-strapped airlines curb
orders.

Boeing has said it delivered 104 commercial aircraft in the
first quarter, including 87 next-generation 737s, four 767
wide-bodies and thirteen 777s. Aircraft manufacturers get paid
on delivery.

Boeing Commercial Airplanes' first-quarter revenue fell 5
percent to $7.1 billion on lower 777 deliveries. BCA's backlog
totaled more than 3,400 planes valued at $263 billion, the
company said.

Boeing repeated that first delivery for the long-delayed
787 Dreamliner was on track for the third quarter. Boeing has
taken about 835 orders from 56 customers for the light-weight
carbon composite aircraft, which is about three years behind
its original schedule due to labor problems and snags in the
global supply chain.

Boeing said delivery of the first 747-8 Freighter is still
planned for mid-2011.

Boeing Defence, Space & Security's first-quarter revenue
was $7.6 billion, flat with a year ago. Earlier this year
Boeing snared a $30 billion Pentagon order 179 U.S. Air Force
refueling planes.

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