July 24 - Boeing's profit and revenue blew past expectations, and the aerospace giant lifted its 2013 outlook. Fred Katayama reports.
Boeing brushed aside the headlines plaguing its planes with profit and revenue that blew past expectations. Helping lift second quarter earnings 13 percent: a huge increase in commercial airplane revenues. The aerospace giant delivered more planes, including 16 new 787 Dreamliners, the jet that had battery-related mishaps earlier this year. Boeing gets paid when planes are delivered, not when they're ordered. And in a world of tighter defense budgets, Boeing managed to boost its defense and space unit's profitability and market share. Boeing is bullish about its prospects. CEO Jim McNerney said, "Overall, our strong first-half performance and positive outlook allows us to raise our 2013 earnings and revenue guidance." Despite the Dreamliner's teething pains and the more recent headlines involving the Asiana crash landing, the 787 on fire in London and the 737's nosegear collapse in New York this week, Boeing's stock has gained 43 percent this year to an all-time closing high, more than double the performance of the S&P 500. Sterne Agee analyst Peter Arment, who rates Boeing a "buy", said, "The outlook cash flow ... is only going to improve beyond 2013; investors should continue to add to Boeing at current levels." Boeing has a lot of orders to keep its plants humming. Its backlog grew nearly 5 percent in the quarter.