Boeing earned first-quarter net income of $1.12 billion, up 20% over a net profit of $923 million in the 2012 March quarter.
Revenue did decline 3% year-over-year to $18.89 billion as the suspension of 787 deliveries in mid-January offset higher 737 and 777 deliveries. First-quarter operating profit was $1.53 billion, down 2% from an operating profit of $1.57 billion in the year-ago period.
First-quarter revenue for the Boeing Commercial Airplanes unit dipped 2% year-over-year to $10.69 billion. But Commercial Airplanes’ operating profit rose 13% to $1.23 billion as the unit’s operating margin lifted 1.5 points to 11.4%. Boeing delivered 137 commercial aircraft in the quarter, the same number as delivered in the 2012 March quarter.
“Strong core operating performance fueled by productivity gains and solid program execution drove higher company earnings and double-digit operating margins,” Boeing chairman, president and CEO Jim McNerney said in a statement. “Commercial Airplanes worked around the clock to resolve the 787 battery issue while also successfully increasing production rates on the 737 and 777 programs … Our first priority in the days ahead is to fully restore our customers’ 787 fleets to service and resume production deliveries. Our outlook for the year is positive.”
Boeing said Commercial Airplanes’ revenue decline can be attributed to “delivery mix and lower services revenue.” The operating margin improvement in part reflects “lower R&D,” it said.
Commercial Airplanes booked 209 net aircraft orders during the quarter. Backlog on March 31 stood at 4,400 aircraft valued at $324 billion.