Boeing Tops Profit Estimates

Boeing posted better-than-expected first-quarter profits Thursday, saying cost-cutting efforts generated a nine-fold increase in earnings from a year ago.

In the latest quarter, the world's biggest jet manufacturer earned $469 million, or 50 cents a share, up from $50 million, or 5 cents, a year earlier. Boeing surpassed the 43-cent consensus estimate of analysts surveyed by First Call Corp.

Revenue climbed to $14.4 billion from $12.9 billion a year ago.

"Earlier in the year we said we were going to closely analyze the value contribution of each and every business and program across the company," said Phil Condit, the chief executive, in a statement.

"We are now fully engaged in that effort and have seen some initial results."

Boeing management has come under pressure from shareholders to improve performance. The company has struggled in the past two years to incorporate several large acquisitions and meet deadlines for its next-generation 737 airliners, which have been hindered by production snafus.

The latest results, while improved, aren't likely to mute that criticism, however. Wall Street still wants to see more progress. Shares of Boeing, a component of the Dow Jones Industrial Average, jumped 3 3/8 to 38 ahead of the report.

Looking ahead, Boeing said it expects to deliver about 620 aircraft in 1999, with revenue of $58 billion and earnings of $1.6 billion to $1.8 billion. In 2000, the company expects to deliver 480 commercial aircraft, with revenue of $49 billion and net profit margin "to be about the same as in 1999," the company said.

Written By Jeffry Bartash, CBS MarketWatch