Boeing income surprises financial experts
(AP) Boeing surprised Wall Street with a 3 percent improvement in second-quarter net income on strong sales of commercial airplanes. The company raised its earnings forecast for the year.
The results announced before the markets opened eased investors' fears of an imminent slowdown in the company's defense unit, which produces Chinook helicopters and F-18s among many other aircraft models. They also highlighted strong growth in the company's commercial airplane unit which has been rapidly increasing the pace of production for some planes to meet demand.
Boeing, based in Chicago, reported net income of $967 million, or $1.27 per share, for the April-June period compared with $941 million, or $1.25 per share, a year earlier.
Revenue jumped 21 percent to $20 billion from $16.54 billion a year ago. Both topped analyst forecasts.
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(AP) Boeing says Aeromexico plans to buy up to 100 planes worth more than $10 billion.
A joint statement from Boeing and the Mexican airline says that Aeromexico plans to buy 90 of Boeing's new 737 Max jets. That's a new version of the 737 that is getting a new engine and other tweaks to improve fuel efficiency. Aeromexico also plans to buy 10 of Boeing's new 787s, a medium-sized plane generally used on international flights.
Spirit AeroSystems in Wichita produces three portions of the 787. The largest portion is the forward section fuselage which includes the cabin, all the way to the second passenger door. Spirit also makes the wing leading edges and the pylons that hold the engines onto the wings.
The deal with the Mexican airline is not yet a firm order.
The airline says the new planes will give it the flexibility to grow according to market conditions. All of Aeromexico's larger planes were built by Boeing Co.
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