Boeing is Cautious in Outlook for 2010
MINNEAPOLIS --
Boeing gave a cautious outlook for 2010 after dealing with program delays and declining orders in 2009.
The airplane maker and defense contractor said on Wednesday it expects to earn $3.70 to $4 per share this year. Wall Street analysts were expecting $4.26.
Boeing says the guidance accounts for lower production of its 777 aircraft, some smaller defense programs, and "market risks." Airlines have struggled during the recession, and aircraft orders have fallen. The International Air Transport Association said on Wednesday that airlines saw passenger demand drop 3.5 percent, the worst falloff the industry has recorded.
Boeing posted a fourth-quarter profit of $1.27 billion on Wednesday, reversing an $86 million loss from a year ago. The profit of $1.75 per share was ahead of analyst expectations. Quarterly revenue rose 42 percent to $17.94 billion.
Results in last year's fourth quarter were held down by a strike and a charge for delays of its new 747-8.
Boeing said it plans to fly its new 747-8 "in the near future." The new version of its 41-year-old plane is longer and can fly greater distances than its predecessors. Its closest competitor is the larger Airbus A380. Demand for the A380 has been weak, though.
Operating profits in Boeing's defense unit fell 6 percent to $829 million. Revenue rose 6 percent to $8.55 billion.
