Boeing profits fall despite strong fourth quarter

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Boeing 787-9 Dreamliner

Boeing Commercial Airplanes’ earnings from operations fell 39 per cent in 2016 despite improvements in the fourth quarter.

Full year earnings fell from $5.1 billion in 2015 to $3.1 billion in 2016, though it improved 160 per cent in the fourth quarter to $1.47 billion.

Fourth quarter revenue was up one per cent to $16.2 billion though down one per cent for the year to $65 billion, with quarterly highlights including delivering the 500th 787 Dreamliner and final assembly of the first 787-10.

Boeing took 288 orders during the quarter and has a backlog of 5,700 aircraft valued at $416 billion.

Boeing chairman, president and chief executive officer, Dennis Muilenburg says: “Looking forward, our team is intent on accelerating productivity and program execution to deliver increasing cash and profitability from our large and diverse order backlog of nearly $500 billion, standing up our new integrated services business, and capturing an even greater share of the growing global aerospace market to deliver superior value to our customers, shareholders and employees.”

Revenue for whole company was down two per cent in 2016 to $94.5 billion and net earnings by five per cent to $4.9 billion.

In the fourth quarter, revenue was down one per cent to $23.3 billion and net earnings were up 59 per cent to $1.6 billion.