Boeing declared its quarterly results for the quarter ended December 2011. The company was able to report healthy numbers. The company reported a twenty percent gains in profits. The company was able to deliver 128 aircrafts over the period. This against 116 delivered a year ago. Boeing Co. posted net income of $1.39 billion on Wednesday, or $1.84 per share. It had help from a tax benefit of 52 cents per share. The results have been better than expected.
The company was able to make gains incrementally from its defense segment. Defense revenue rose six percent as compared to previous year. Defense contractor are seeing signs of stretch on their books as the United States government has reduced the budget allocation for the fiscal year.
Commenting on the results CEO Jim McNerney stated that “The Air Force has pressed us for a very good deal, and they’re leaving it to us for the decision on where and how to produce it,” The company also added that it has decided to close its Kansas plant which employs around 2000 workers. The company has also replaced the chief of its Boeing 777 operation. The aerospace company named Larry Loftis vice president and general manager for the Dream liner program. The current head of the program, Scott Fancher, takes over as vice president and general manager of the 777 project.
The company recently acknowledged that its 777 airlines had some flaws and steps were being taken to ensure that the flaws were corrected. We maintain a buy on the stock as the company’s future growth prospects look good. The company is also focusing on the Asian markets which will provide the needed traction to the company over the long run. We recommend a time horizon of around twelve months on the stock.