Financial Report Financial reports from the largest companies of the world

The profit of Boeing decreased

The U.S. aviation company Boeing announced that its profit for the fourth quarter of 2010 declined due to reduction of supply of commercial planes last year. The management of Boeing predicts that profits will likely suffer, and in the current quarter because of delays in deliveries of the aircraft Dreamliner 787. The net profit for the period from October to December amounted to 1.16 billion dollars or 1.56 dollars per share, compared with 1.27 billion dollars or 1.75 dollars per share, a year ago. Excluding the one-off income and expenses, net profit to Boeing amounted to 1.11 dollars per share, which meet market expectations of economists surveyed by Thomson Reuters. The company forecast earnings per share for 2011 between 3.80 and 4.00 dollars, which was weaker than market expectations for earnings of 4.55 dollars. Boeing states that the financial results for the current quarter may be affected by increased costs for pension accounts of employees, delayed deliveries Dremliner 787 and shrinking defense spending. The company recently delayed the first deliveries of the first Dreamliner for the third quarter of 2011. Its revenue in the fourth quarter of 2010 decreased by 8% yoy to 16.55 billion dollars, which also proved to be below market forecasts.
The revenues of the commercial aircraft division reported 11 percent decline because fewer than expected supply of aircraft 777 and 747. The main competitor to Boeing - Airbus, has sold 644 aircraft in 2010 compared to 625 aircraft sold by Boeing. Over the past eight years, Airbus sold more planes as the total number compared to its competitor in the USA. The shares of Boeing, which is among the 30 stocks in the index Dow Jones industrial Average, have risen by about 20% over the past 12 months. Shortly after the start of today's session of the New York Stock Exchange they are cheaper by 3.7 percent to 69.54 dollars per share.