Aerospace and defense giant Boeing Co. (BA) reported Wednesday a 20 percent increase in fourth-quarter profit, boosted by improved margins and revenue growth amid higher aircraft deliveries, partially offset by higher pension expenses. Both earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue forecast for the full-year 2012.
"Strong fourth-quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011," Chairman, President and CEO Jim McNerney said in a statement.
The Chicago, Illinois-based airplane maker reported net income of $1.39 billion or $1.84 per share for the fourth quarter, higher than $1.16 billion or $1.56 per share in the prior-year quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $1.01 per share for the fourth quarter. Analysts' estimates typically exclude special items.
The results for the latest quarter include a favorable tax settlement of $0.52, while the year-ago quarter had $0.50 of the same.
Total revenues for the quarter grew 18 percent to $19.56 billion from $16.55 billion in the same quarter last year on higher commercial airplane deliveries, and topped twenty-one Wall Street analysts' consensus estimate of $19.37 billion by a whisker.
Operating margin for the quarter expanded 150 basis points to 8.2 percent, reflecting higher commercial airplane volume and continued strong core performance across the company's businesses, partially offset by higher pension expense.
Segment-wise, Boeing Commercial Airplanes revenue increased 31 percent to $10.70 billion on improved model mix and 10 percent higher airplane delivery volume to 128 airplanes from last year. The company had over 1,000 orders and commitments for the 737 MAX, including 150 firm orders from launch customer Southwest Airlines at the end of the fourth quarter.
In the Boeing Defense, Space & Security segment, total revenues grew 4 percent to $8.47 billion from last year, with revenues from Boeing military aircraft increasing 9 percent.
Total company backlog at quarter-end was $356 billion, up from $332 billion at the beginning of the quarter. Net orders for the quarter were $42 billion.
Total pension expense for the quarter increased to $344 million from $254 million in the same period last year.
For fiscal 2011, the company net income of $4.02 billion or $5.34 per share, higher than $3.31 billion or $4.45 per share in the prior year. Analysts expected the company to report earnings of $4.49 per share for fiscal 2011.
Total revenues for the full year grew 7 percent to $68.74 billion from $64.31 billion in the previous year. Street was looking for full-year 2011 revenues of $68.58 billion.
Looking ahead to fiscal 2012, the company provided initial earnings guidance in a range of $4.05 to $4.25 per share, reflecting strong operating performance offset by $0.83 per share of increased pension expense. The company also provided revenue forecast for the full year between $78 billion and $80 billion.
Street is currently looking for full-year 2012 earnings of $4.96 per share on annual revenues of $78.55 billion.
The company also expects to deliver about 585 to 600 commercial airplanes, with capital expenditures for the year projected to be about $2 billion and pension expense of about $2.6 billion.
"We enter 2012 with renewed momentum, and proven business and product strategies. With a record backlog and intense focus on productivity, we are well positioned to deliver growth and increased competitiveness, even as we face constrained U.S. defense spending and pension headwinds," McNerney added.
BA closed Tuesday's regular trading session at $75.36, up $0.30 on a volume of 4.94 million shares, lower than the three-month average volume of 5.53 million shares. In the past 52-week period, the stock has been trading in a range of $56.01 to $80.65.
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