Boeing records 38 rise in profit

Aircraft manufacturer Boeing has announced a significant boost in performance.

The company reported a 38 per cent rise in net profit to $1.34 billion (£890 million) in the first three months of the year. Boeing explained that the rise is a result of increased production of commercial aircraft. It delivered 184 planes during the period, a 14 per cent improvement on the same time a year earlier.

Revenue at Boeing was up eight per cent to $22.1 billion thanks to a higher number of commercial deliveries while backlog remains strong at $495 billion over 5,700 commercial airplane orders.

It was not all positive with Boeing's defence and space business hit by the US government's decision to make defence cutbacks. As a result, this division of Boeing's operations fell by 12 per cent to $6.71 billion, compared to a year earlier. Annual revenue is forecast between $94.5 billion and $96.5 billion.

Jim McNerney, Boeing chairman and chief executive officer, said: "Our outlook for the full year remains positive as our teams work to efficiently deliver our portfolio of industry-leading aerospace products and services.

"We are also maximising the expertise of our talented people across the company to accelerate development program milestones and improve affordability for our customers."

Increased demand

Boeing is continuing its strong competition with rival Airbus. The company was boosted in January when it saw a rise in demand for its aircraft. In its trading update at the start of the year it revealed a 15 per cent uplift in commercial aircraft operations with revenues growing to $16.8 billion.

It has also managed to scale back production costs of its flagship 787 Dreamliner. The luxury aircraft has had a stuttering start to its life in service but after a number of initial problems it has been embraced by airlines across the world.