Boeing Co. said Wednesday that it expected to deliver 60 or more 787 Dreamliner jets this year, a cautious forecast that it can quickly resolve the electrical problems that have grounded the global 787 fleet.
The company's guidance came as it reported a 30% drop in fourth-quarter profit 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.
The aerospace and defense giant's reported earnings come as the U.S. economy unexpectedly shrank .1% in the fourth quarter of 2012, the result of superstorm Sandy and reduced defense spending, the Commerce Department said Wednesday.
Boeing projected it will deliver its highest number of commercial jets in its history--635 to 645--this year compared with 601 in 2012 as it boosts production of its single-aisle 737 and twin-aisle 777 jets. The outlook assumes deliveries of 787s will exceed 60.
The company's backlog of commercial, defense and space products rose to $390 billion and generated $81.7 billion in revenue in 2012, which Boeing says are both records.
The Dreamliner delivery figure, however, reflects Boeing's caution about the pace it can sustain once the now-two week-old imposed Federal Aviation Administration grounding is lifted. The company today is building at a rate of five 787s per month, expected to go to seven per month before mid-year, but the full-year guidance reflects a lower overall delivery rate.
Boeing plans to accelerate production of the 787 to ten per month by the end of the year, with expectations of delivering as many as 120 Dreamliners in 2014.
Doug Harned, aerospace analyst for Buckingham Research called the delivery guidance "disappointing" in a research note and said it was unlikely that the accelerating production would be sustained throughout the 787's extended supply chain as the company moved to begin assembly of a new larger Dreamliner in the second half of this year.
The 787, made from a majority of carbon fiber composites, has been beset by delays during its development, which stretched three and a half years longer than expected.
"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 now exclude pension components related to market fluctuations and other impacts, a change in how Boeing reports its quarterly earnings-were $1.46 compared with $1.92 a year earlier, which included 52 cents a share related to a favorable tax settlement.
The move by the aerospace and defense giant reflects long-standing concern from Wall Street that the company's pension obligations weighed on its overall earnings performance.
Quarterly 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 between $5 and $5.20 on revenue of between $82 billion and $85 billion. Analysts polled by Thomson Reuters recently expected per-share profit of $5.13 and revenue of $88.19 billion.
Write to Jon Ostrower at jon.ostrower@wsj.com
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