Boeing: Pension Expenses, Defense Could Weigh in 2012

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Boeing (BA) announced strong earnings and a new 11 billion order for 737s, but the company forecast disappointing 2012 earnings as pension expenses could weigh on results this year. Shares fell 1.8% in pre-market trading

Boeing posted of $1.84 of EPS, 83 cents ahead of expectations. The company delivered 128 commercial planes in the quarter, and posted a 56% jump in profits from commercial planes.

Boeing forecast 2012 EPS of $4.05 to $4.25 per share, below expectations for $4.90. Higher expected pension costs are expected to reduce EPS by 83 cents.

The company expects strong growth in commercial plane deliveries, forecasting 585 to 600 deliveries, versus 477 in 2011. But Boeing sees defense revenue falling by about 5%.

“We enter 2012 with renewed momentum, and proven business and product strategies. *With a record backlog and intense focus on productivity, we are well positioned to deliver growth and increased competitiveness, even as we face constrained U.S. defense spending and pension headwinds,” said Chairman and CEO Jim McNerney.



Original Article Source by Barrons.com