Boeing profits soar to record on plane sales, more federal contracts

By IndustrialsFOXBusiness

Boeing CEO: Our global services business has been growing at 12% a year

Boeing CEO Dennis Muilenburg discusses how the Federal Reserve’s interest rate hikes are impacting his company and the company’s growing global services business.

Boeing saw sales increases across core business segments leading to record earnings in 2018, shattering Wall Street expectations.

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Revenue at the Chicago-based aerospace giant was $101 billion in 2018, supported by a 14 percent sales increase in the fourth quarter to $28.3 billion, higher than analyst estimates.

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BABOEING COMPANY416.45-1.52-0.36%

Profits for the year rose 24 percent to $10.4 billion, it said on Wednesday. In the three months through December, adjusted net income surged 49 percent to $3.9 billion, or $5.48 per share, also topping Wall Street predictions.

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"Across the enterprise our team delivered strong core operating performance and customer focus, driving record revenues, earnings and cash flow,” CEO Dennis Muilenburg said.

In 2019, the firm expects revenue to hit as high as $111.5 billion, and profits to rise as much as $20.10 per share.

The company increased its commercial plane deliveries in the year by 6 percent to 806, totaling $60.7 million in sales. Revenue at Boeing’s federal defense contracting business grew 13 percent to $23.1 billion.

Among the major U.S. contracts it won last year was a $9.2 billion order to replace the Air Force’s training jets.

The company faced scrutiny in November over its role in Lion Air crash that left 189 people dead. Boeing in November said Indonesian authorities identified an issue with a sensor on its 737 MAX jet – one of the world’s most widely flown plane -- that tracks lift to avoid stalling on take-off.

The families of victims of the crash sued Boeing, alleging the firm manufactured a plane that “was defective and in a condition that rendered it unreasonably dangerous for its intended use.”

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At the time of the crash, the Boeing had over 4,700 orders for the 737 MAX.