(MENAFN- AFP) US aerospace and defense giant Boeing on Wednesday posted lower third-quarter earnings than a year ago, hit by higher employee pension costs, but lifted its full-year forecast.
The Boeing Company said net income fell 6.0 percent to $1.03 billion, as increased earnings in its Commercial Airplanes and Defense, Space & Security divisions were more than offset by a higher pension expense of $194 million.
Earnings per share were $1.35, well above analyst estimates of $1.13.
Revenue jumped 13 percent to $20.01 billion, slightly less than the $20.03 billion expected by Wall Street.
"Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose," said Boeing chairman, president and chief executive Jim McNerney.
Growth continued to build in Commercial Airplanes with deliveries of the 787 Dreamliner and orders for the new 737 MAX, McNerney said. Revenues jumped 28 percent from a year ago to $12.2 billion on higher delivery volume.
Commercial Airplanes booked 369 net orders during the quarter. Boeing said it has a strong backlog of roughly 4,100 airplanes valued at $307 billion.
The Defense, Space & Security business had maintained double-digit operating margins, at 10.5 percent, in a "challenging environment," McNerney said. Earnings were flat and revenue fell 4.0 percent.
The backlog was $71 billion, more than double the unit's projected 2012 revenue.
Boeing raised its 2012 forecasts to earnings per share between $4.80 and $4.95, compared with the prior estimate of $4.40-$4.60.
Revenue was expected to come in between $80.5 billion and $82.0 billion for the full year, boosted by higher Defense, Space & Security revenue, the Chicago-based company said.
The prior revenue guidance was $79.5-$81.5 billion.
"We remain well positioned for long-term growth with a clear focus on quality, productivity and disciplined program execution," McNerney said.
Shares in Boeing were up 2.7 percent in pre-market trade. On Tuesday, Boeing had dropped 1.2 percent to $72.82 amid a sharp market sell-off.
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