Airline News
Boeing profit skyrockets in Q3
October 23rd 2015
Boeing’s Commercial Airplanes has reported company-wide 2015 third-quarter net income of $1.7 billion, up 25.1% year-on-year, with revenue increasing 9.8% to $17.69 billion on “higher delivery volume and mix,” Boeing said. Read More » The division’s operating margin during the quarter was 10%, down 1.2% year-on-year, “reflecting higher R&D and the dilutive impact of higher 787 deliveries partially offset by strong performance on production programs,” the manufacturer explained.
In the third quarter, Boeing delivered 199 aircraft, including 126 737s, 37 787s, 27 777s, five 767s and four 747s. “By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow,” Boeing president and CEO Dennis Muilenburg said. It also booked 166 orders during the quarter; the company’s backlog now stands at nearly 5,700 aircraft valued at $426 billion.
Based on its current level of higher commercial deliveries, Boeing announced a $500 million increase in its revenue guidance for 2015 to between $95 billion and $97 billion. “Three quarters of solid results and confidence in our continued operating performance enabled us to raise our revenue, earnings per share and operating cash flow guidance for the year,” Muilenburg said.
It has been a successful year for Boeing so far. In late August, it completed the firm design configuration for the 777X series, and in September it began final assembly of its first 737 MAX at its Renton, Washington, facility; the company intends to roll out the first completed MAX by year-end and will fly it in early 2016. Moreover, Boeing has committed to establishing a plant in China, its first overseas, to finish work on its 737s. As such, it has entered into an agreement with the Commercial Aircraft Corp. of China (COMAC) to open the joint-venture facility for “interiors completion, paint and delivery of 737 aircraft to Chinese customers”. The airframes will be built in Renton, before being ferried to China for the completion work.
