Boeing profits up, IDS down

Boeing Co. saw flat revenue growth and a 4 percent jump in profits in the fourth quarter, but its St. Louis-based Integrated Defense Systems fell in both categories, the company announced this morning.

Overall, the company beat Wall Street estimates for the quarter, largely on the strength of commercial airplane deliveries and despite delays to its 787 Dreamliner. Revenue stayed basically unchanged at $17.5 billion, with profits net income of $1 billion, up 4 percent from $989 million in the same period last year.

But the defense unit, which comprises about half the company and is the biggest private employer in St. Louis region, didn’t fare as well. Revenue fell 14 percent, to $8.37 billion from 9.69 billion a year ago, and earnings dropped 5 percent, to $978 million from $1.03 billion. It did see higher operating margins, though.

The company attributed the revenue decline to the timing of aircraft deliveries and the formation in Dec. 2006 of the United Launch Alliance, a joint project with Lockheed Martin. That led to revenue from the Delta IV family of rockets being moved off Boeing’s books.

For the year, Boeing revenue climbed 8 percent, to $66.4 billion and earnings jumped 93 percent, to $5.8 billion. IDS revenue fell 1 percent, to $32.1 billion, but earnings climbed 13 percent, to $3.4 billion.

The company lowered its 2008 guidance by $500 million, to $67 - $68 billion, because of the delays to the Dreamliner, but raised its earnings per share guidance.

The full earnings release is available here (pdf)