The Boeing Company, a leading aircraft manufacturer, has reported a 38 per cent jump in its net income for the first quarter which soared to $1.3 billion from $965 million last year.

The aviation giant also reported an eight per cent increase in its first-quarter revenue which hit $22.1 billion on higher commercial deliveries.

"With disciplined execution and a sharp focus on productivity, we are meeting increasing customer commitments while profitably growing our business," said Boeing chairman and chief executive officer Jim McNerney. "The strong operational and financial performance reinforces our ability to continue providing competitive returns for our shareholders while investing in technology and our people."

"Our outlook for the full year remains positive as our teams work to efficiently deliver our portfolio of industry-leading aerospace products and services. We are also maximising the expertise of our talented people across the company to accelerate development program milestones and improve affordability for our customers," he said.

Operating cash flow in the quarter was $100 million, reflecting timing of receipts and expenditures, commercial airplane production rates and strong operating performance. During the quarter, the company repurchased 17 million shares for $2.5 billion, leaving $9.5 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two to three years.

The company also paid $600 million in dividends in the quarter, reflecting an approximately 25 per cent increase in dividends per share compared to the same period of the prior year.

Cash and investments in marketable securities totalled $9.6 billion at quarter-end, down from $13.1 billion at the beginning of the year, primarily due to the share repurchases and timing of cash flows. Debt was $9 billion, down from $9.1 billion at the beginning of the year.

Total company backlog at quarter-end was $495 billion, down from $502 billion at the beginning of the year, and included net orders for the quarter of $15 billion.

Commercial Airplanes first-quarter revenue increased 21 per cent to $15.4 billion on higher delivery volume and mix. First-quarter operating margin was 10.5 per cent, reflecting the dilutive impact of higher 787 deliveries.

During the quarter, Commercial Airplanes captured orders for 52 737 MAX airplanes. The 737 programme has won over 2,700 firm orders for the 737 MAX since launch.

Commercial Airplanes booked 110 net orders during the quarter. Backlog remains strong with over 5,700 airplanes valued at $435 billion.

Defense, Space & Security's first-quarter revenue was $6.7 billion with an operating margin of 11.1 per cent.

Boeing Military Aircraft’s (BMA) first-quarter revenue was $2.7 billion, reflecting planned timing of deliveries and mix; operating margin was 9.5 per cent. During the quarter, BMA was awarded contracts for 43 Apache helicopters.

Network and Space Systems’ (N&SS) first-quarter revenue was $1.7 billion, reflecting lower satellites and missile defence system programme volume partially offset by higher volume on the Commercial Crew programme. Operating margin increased to 9.6 per cent on strong performance related to the United Launch Alliance joint venture. During the quarter, the first two all-electric Boeing 702SP satellites were launched on a single rocket.

Global Services and Support’s (GS&S) first-quarter revenue was $2.2 billion, reflecting slightly lower volume in integrated logistics. Operating margin increased to 14.1 per cent on strong operating performance and programme mix. During the quarter, GS&S was awarded a combat logistics support agreement with the US Defense Logistics Agency.

Backlog at Defense, Space & Security was $60 billion, of which 37 per cent represents orders from international customers.

At quarter-end, Boeing Capital's net portfolio balance was $3.4 billion, down from $3.5 billion at the beginning of the year. Total pension expense for the first quarter was $785 million, down from $1,035 million in the same period of the prior year. Unallocated pension expense in 2014 included a $334 million non-cash charge related to retirement plan changes. – TradeArabia News Service