Boeing Quarterly Profit Up 78 Percent By Chelsea Emery NEW YORK (Reuters) - Boeing Co. (BA.N: Quote , Profile , Research ) on Wednesday posted a 78 percent jump in quarterly earnings that beat Wall Street forecasts as stronger demand for its military networking and weapons systems helped offset a decline in commercial airplane revenue. The company raised its full-year forecast and bumped its commercial plane delivery forecast for 2005 higher. The airplane maker also said it still expected 200 firm orders for its newest jetliner, the 7E7, even as higher oil prices have dampened airline profits. "Boeing's quarter was solid overall, with the excellent performance in defense and a strong earnings-per-share number," said Banc of America Securities analyst Nick Fothergill. Still, he noted, the company did not raise its 2005 profit forecasts which could "hint at headwinds" including pension expenses or possible commercial aircraft deferrals. Earnings for the Chicago-based maker of commercial and military jets rose to $456 million, or 56 cents per share, from $256 million, or 32 cents per share, a year earlier. Sales rose 8 percent to $13.15 billion, topping forecasts of $12.42 billion. Per-share results, including items, beat Wall Street's average forecast of 41 cents per share, according to Reuters Estimates. Items included including a 2-cent gain for the sale of Boeing Capital Corp.'s commercial finance unit, a 4-cent charge for retiring $1 billion of Boeing Capital debt, and a 14-cent contribution from state tax settlements and other adjustments. Still, the better-than-expected performance stemmed largely from state tax settlements, analysts noted. "We believe the release is neutral for the stock," wrote JP Morgan Securities analyst Joe Nadol in a note to clients. "EPS upside was due to the tax benefit." The company generated $2.3 billion in cash flow, before making a $1.6 billion contribution to pension plans. "There are always a lot of moving parts at Boeing, but the cash tells you how they're operating," said Howard Rubel, an analyst with Schwab Soundview Capital Markets, adding that the results signaled good cash flow companywide. Revenue for Integrated Defense Systems, Boeing's defense unit which makes the C-17 transport plane and fighter jets including the F-15 Eagle and F/A-18E/F Super Hornet, jumped 13 percent to $8.3 billion, while the group's operating margins rose to 9.9 percent from 7.7 percent.     Continued ... Quelle "Boeing Quarterly Profit Up 78 Percent" : reuters.com Main page for "Boeing Quarterly Profit Up 78 Percent"