Boeing Profit Off 30% Amid Year-Earlier Tax Benefit

Boeing Co.'s (BA) fourth-quarter earnings fell 30% from a year-earlier period that was helped by a favorable tax settlement, masking the aerospace and defense company's revenue growth driven by higher deliveries of commercial airplanes.

Boeing projected it will deliver 635 to 645 commercial jets this year compared with 601 in 2012 as it boosts production of its 737 and 777 jets. The outlook assumes deliveries of 787s will exceed 60.

The company's commercial business is in the midst of a crisis with its 787 Dreamliner, which has been grounded by regulators following a series of technical problems, including two battery fires. A prolonged delay before the Dreamliners return to service could disrupt Boeing's plans to step up production for the aircraft, which already had faced years of production and design delays before its launch.

"Our first order of business for 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers, said Chairman and Chief Executive Jim McNerney. "At the same time, we remain focused on our ongoing priorities of profitable ramp up in commercial airplane production, successful execution of our development programs, and continued growth in core, adjacent and international defense and space markets."

The company's defense business also has been under pressure amid uncertainty about U.S. government spending. During November the defense division unveiled plans to trim its executive ranks, part of Boeing's efforts to reduce costs amid uncertainty about future Pentagon budget cuts.

Boeing reported a profit of $978 million, or $1.28 a share, down from $1.39 billion, or $1.84 a share, a year earlier.

Core operating earnings--which adjusts to exclude pension components related to market fluctuations and other impacts--were $1.46 compared with $1.92 a year earlier, which included 52 cents a share related to a favorable tax settlement.

Revenue increased 14% to $22.3 billion.

Analysts polled by Thomson Reuters most recently projected earnings of $1.19 on revenue of $22.36 billion.

The company's commercial airplanes segment posted revenue growth of 29% amid stronger deliveries, while operating earnings increased 29%. Revenue growth at its military aircraft business was offset by declines at its networks and space systems division and global services and support business.

The company's defense business reported revenue declined 1.5%, while operating earnings were down 13%.

For the year, the company projected per-share earnings of $5 and $5.20 on revenue of $82 billion and $85 billion. Analysts polled by Thomson Reuters recently expected per-share profit of $5.13 and revenue of $88.19 billion.

Shares were up 60 cents at $74.25 in premarket trading. Through Tuesday's close, the stock is down 2.3% this year.

Write to Tess Stynes at [e-mail]

Copyright (c) 2013 Dow Jones & Company, Inc.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires