DALLAS — Boeing Co.’s fourth-quarter profit rose 19 percent as demand for commercial airliners trumped weakness in its defense business.
Investors looked past a muted outlook for 2015 earnings and sent the shares to a 52-week high on Wednesday.
Chicago-based Boeing and European rival Airbus have prospered as airlines around the world have gone on a shopping spree, helped by rising demand for travel and cheap financing. Boeing has an 8-year order backlog for nearly 5,800 planes valued at $440 billion.
The recent plunge in oil and jet fuel prices has narrowed the advantage that airlines get from buying new, more fuel-efficient planes. In December, Air France-KLM said that lower fuel prices were a factor in delaying delivery of new planes.
Boeing CEO James McNerney dismissed the notion that cheap fuel could undercut his company. He said airlines get other benefits from new planes, including lower maintenance costs and more comfort for passengers. McNerney said sales are more closely tied to airline profits — and those are booming — than to oil prices.
Boeing expects to deliver 750 to 755 commercial jets this year, up from a record 723 last year.
Cheaper fuel won’t cause airlines to delay orders or deliveries, but the rising dollar might, said Canaccord Genuity analyst Ken Herbert.
“Fifty percent of the backlog today is with European and Asian carriers,” Herbert said. “As those carriers continue to see softening in their currencies relative to the dollar, those planes get more expensive.”
For the fourth quarter, Boeing reported net income of $1.47 billion, or
Article source: http://www.bostonherald.com/business/business_markets/2015/01/demand_for_airplanes_lifts_boeings_4q_profit
