By Chelsey Dulaney
Boeing Co. posted stronger-than-expected results for the fourth
quarter but gave a weak profit outlook for 2015 amid concerns that
tumbling oil prices may hamper demand for its fuel-efficient
planes.
The world's largest aerospace company by revenue said it expects
to post $8.20 to $8.40 in earnings, below the $8.64 a share
projected by analysts polled by Thomson Reuters. Boeing's revenue
guidance of $94.5 billion to $96.5 billion, however, topped
expectations for $93.25 billion.
The company's free cash flow also rebounded in the quarter to
$4.33 billion, versus $742 million a year earlier and $317 million
in the third quarter.
Shares rose 4% premarket.
Boeing's results have been buoyed by strong commercial-jet
demand in recent quarters, despite geopolitical developments that
have slowed air-traffic growth in some regions. The company
delivered 195 commercial jets in the fourth quarter, up 13% from a
year earlier, led by higher 737 and 787 deliveries.
Boeing and rival Airbus Group NV have built record order books
on the promise of improved fuel efficiency. Tumbling oil prices,
though, could make airlines defer investment in more fuel-efficient
planes.
Boeing is working through a record $430 billion order backlog
for commercial jets. That comes as some industry executives and
investors have voiced concern about a potential bubble in jetliner
demand.
In all, Boeing reported a fourth-quarter profit of $1.47
billion, or $2.02 a share, up from $1.23 billion, or $1.61 a share,
a year earlier. Core operating earnings, which exclude items
including pension components related to market fluctuations, rose
to $2.31 from $1.88.
Revenue improved 2.9% to $24.47 billion.
Analysts polled by Thomson Reuters had expected $2.11 in
per-share earnings and $23.93 billion in revenue.
Revenue at Boeing's commercial division climbed 15% to $16.84
billion.
But revenue at the defense, space and security division fell 14%
to $7.59 billion. Boeing is restructuring the defense unit to
counter military budget pressures and compete for a number of
upcoming Pentagon competitions, including a new bomber.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for Fugro NV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=NL0000352565
Access Investor Kit for The Boeing Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0970231058
Subscribe to WSJ: http://online.wsj.com?mod=djnwires