DOW JONES NEWSWIRES Boeing Co.'s (BA) first-quarter earnings surged as the aerospace company continued to be driven by a rebound in the commercial airplane business, while its defense operations still saw more modest growth. Shares were up 2.1% at $74.75 in recent premarket trading as the results topped expectations. Through Tuesday's close, the stock is down 2.3% in the past year. The company's commercial business has been benefiting from a global expansion of passenger air travel and a mountain of orders for its best-selling 737 jets. For the latest period, the commercial airplane business posted revenue growth of 54% as deliveries improved by 32%. Meanwhile, Boeing and others have faced challenges from soft U.S. defense spending. In January, Boeing unveiled plans to close its military-jet and other operations in Wichita, Kan., as it grapples with leaner defense budgets. In the latest period, Boeing's defense, space and security segment, the larger business by revenue, saw revenue rise 8% and operating earnings grow 11% as growth at its military aircraft and services and support businesses offset declines at its network and space systems segment. Boeing reported a profit of $923 million, or $1.22 a share, up from $586 million, or 78 cents a share, a year earlier. The latest period included 10 cents related to reduction in a litigation-related reserve. Revenue jumped 30% to $19.38 billion. Analysts polled by Thomson Reuters most recently projected earnings of 94 cents on revenue of $18.37 billion. Operating margin rose to 8.1% from 6.7%. Total backlog at the end of the quarter was $379.8 billion, up from $355.5 billion at the end of last year. Boeing adjusted its 2012 per-share earnings estimate to $4.15 and $4.35 to reflect a reduction in a litigation-related reserve. In January the company expected $4.05 to $4.25. Boeing affirmed its 2012 revenue guidance. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
