Boeing posts 17 per cent rise in Q2 profits

Boeing Co said on Wednesday its second-quarter earnings rose 17 per cent from a year earlier, largely on the back of higher defence sales and lower costs in its commercial aircraft division.

 The Chicago-based company also said it would announce a revised schedule for its long-delayed 787 jetliner in the third quarter. Boeing's credibility suffered a serious blow last month when it announced the latest of several costly delays of the plane's inaugural test flight.

Boeing, the world's second-largest commercial plane maker, said it earned $998 million, or $1.41 per share, for the three months ended 30 June. That compares with $852 million, or $1.16 per share, during the same period last year, when it was weighed down by a charge of 22 cents per share for late delivery of military aircraft.

Revenue edged up 1 percent to $17.15 billion from $16.96 billion in the year-earlier period. Boeing's St Louis-based Integrated Defense Systems posted revenue of nearly $8.7 billion, a 9 per cent increase over the second quarter of 2008.

"The fundamental operating engine of this company is running very well right now," said Boeing president and chief executive officer Jim McNerney. But McNerney also expressed disappointment in schedule delays that dog the 787 Dreamliner. Boeing postponed the first 787 flight to reinforce an area within the side-of-body section of the plane.

During a conference call with the media and industry analysts, McNerney said Boeing's defence business faces some challenges because of shifting priorities in U.S. defence spending.