Boeing has a stable outlook says Standard and Poor

Source: Manufacturing Digital

Date :31/01/2008 07:01:04

Boeing Co's strong fourth-quarter results have no impact on the company’s ratings or outlook, Standard & Poor's Ratings Services said Thursday.

S&P has 'A+/A-1' ratings with a stable outlook on the aerospace behemoth.

Boeing results

The rating update comes after Boeing, the second-largest commercial jet maker, reported better-than-expected fourth-quarter earnings Wednesday, offset by the strength of still-booming commercial airplane sales and improved productivity.

This has helped ease investor concerns, for now, about the possibility of another setback for its thrice-delayed 787 Dreamliner.

Net income for the last three months of 2007 was $1.03 billion, or $1.36 per share. Revenue was $17.5 billion, flat with a year earlier but slightly above analysts' forecast of $17.3 billion.

Finance, investments

The ratings agency said Boeing's margins should remain at about 10.5 percent despite expected slower growth in defense spending likely to constrain integrated defense systems revenues increase for 2008.

The company's financial resources should comfortably cover operating and financing requirements, including sizable investment for new products and moderate initiatives to enhance shareholder value, S&P added.

787 delay

Boeing increased its guidance for 2008 earnings per share to between $5.70 and $5.85. It also lowered its estimate of 2008 revenue by $500 million, to a range of $67 billion to $68 billion, due to the 787 delay.

January 31, 2008