Boeing Co said on Wednesday fourth-quarter profit more than doubled, easily beating Wall Street expectations, as it delivered more commercial aircraft than in the year-earlier quarter and its defence unit posted record sales.
The Chicago-based company, which outsold European rival Airbus last year, also raised its profit forecasts for this year and next and reassured investors that its wildly successful 787 Dreamliner, set to roll out next year, is still on schedule.
Boeing's shares, which have risen 25 percent over the past 12 months, jumped $4, or 4.65 percent, to $90.00 on the New York Stock Exchange in morning trading. They hit an all-time high of $92.03 in November.
"We expect today's earnings to kick-start a rally in the stock," said Bank of America analyst Robert Stallard in a research note. Boeing, which took back its crown as the world's leading commercial plane maker last year - after five years in Airbus' wake - is benefiting from a sustained resurgence in travel that has fuelled demand for its commercial jets, particularly from the Middle East and Asia.
Its defence unit, which is the Pentagon's No 2 supplier, is also capitalising on record US military spending, augmented by extra funds for operations in Iraq and Afghanistan. Boeing reported quarterly profit of $989 million, or $1.29 per share, compared with $460 million, or 58 cents per share, in the year-ago quarter.
Adjusted earnings for the quarter, excluding some tax gains and results of discontinued businesses, were $1.16 per share. That beat Wall Street's comparable forecast of 97 cents per share, according to Reuters Estimates.
Overall sales for the quarter rose 26 percent to $17.5 billion, beating analysts' average forecast of $16.47 billion. Annual sales rose 15 percent to $61.5 billion.
Boeing's commercial airplanes unit posted a 37 percent increase in fourth-quarter revenue to $7.6 billion, driven by a 41 percent increase in airplane deliveries and higher services revenue.
The US plane maker reclaimed its position as the world's leader earlier this month, as its tally of 1,044 firm orders in 2006 easily outstripped Airbus' 790. It delivered 103 planes in the quarter, up from 73 last year. For all of 2006, it delivered 398 planes, still trailing Airbus, which delivered 434. Boeing is likely to overtake Airbus in deliveries in coming years as its lead in orders translates into finished aircraft.
The company kept its forecast for 440 to 445 airplane deliveries this year and estimated 515 to 520 deliveries next year as production ramps up. Boeing is dominating the lucrative market for wide-body planes, led by its lightweight 787 Dreamliner, which is set to enter service next year. The carbon and titanium 787 is Boeing's most successful plane launch, racking up 452 firm orders since 2004.
Boeing's Integrated Defence Systems unit, which is the Pentagon's No 2 contractor behind Lockheed Martin Corp, posted an 18 percent increase in fourth-quarter revenue to $9.7 billion.
Boeing raised its 2007 earnings forecast to a range of $4.55 to $4.75 per share. Analysts were already expecting $4.75 per share, on average. For 2008, it forecast earnings of $5.55 to $5.75 per share. Analysts were expecting $5.82 per share, on average.