11:00am | The Boeing Co. reported strong results for its third quarter on Wednesday, and increased its guidance of the year.

Chicago-based Boeing reported third-quarter net income of $800 million, or $1.12 per share, on revenue of $17 billion, results that the company says reflect higher commercial airplanes volume and strong performance across the company’s core businesses.

The company is still one of Long Beach’s largest employers, and has a strong presence in the community.

The company also increased its 2010 earnings per share guidance to between $3.80 and $4 per share, also a reflection of “continued strong performance” in the company’s commercial airplanes business. Revenue guidance was narrowed to between $64.5 billion and $65.5 billion.

“Our results and revised outlook reflect the continued strong performance of our commercial production and services programs and the ability of our defense businesses to produce solid results in a challenging environment,” Jim McNerney, Boeing chairman, president and CEO said in a statement. “Orders were particularly encouraging, with a multi-year production contract for 124 F/A-18 aircraft and more than 200 net commercial airplane orders booked in the quarter, increasing our backlog and demonstrating improved overall market confidence.”

Highlights of the financial report include:

  • Third-quarter earnings per share of $1.12 reported on operating margin of 8.2% and revenue of $17 billion;
  • Operating cash flow of $1.9 billion reflects strong operating performance;
  • Cash and marketable securities of $10 billion provides strong liquidity;
  • Backlog grew to $321 billion including $25 billion of new orders in the quarter;
  • 2010 earnings per share guidance increased to between $3.80 and $4 per share on a stronger outlook in its Commercial Airplanes division.

Boeing Commercial Airplanes third-quarter revenue was $8.7 billion, and operating margin was 11.6% due to higher deliveries and continued strong operating performance, the company said.  Boeing’s prior year quarterly results were impacted by a $2.6 billion 787 R&D reclassification and a $1 billion 747 charge, the company stated.

Commercial Airplanes booked 257 gross orders during the quarter, while 36 orders were removed from the order book, according to the company. That is a large jump from a year ago when the company reported 79 airplanes ordered. “Contractual backlog remains strong with 3,401 airplanes valued at $255 billion, more than seven times the unit’s projected 2010 revenue,” the company stated.

The 787 “Dreamliner” program achieved a series of flight test milestones during the quarter, including the final dedicated test aircraft being delivered to the the flight test fleet on Oct. 4. Firm orders for the 787 by the end of the quarter totaled 847 airplanes from 55 customers, with first delivery expected in mid-first quarter 2011, the company said.

The Dreamliner has more advance orders than any passenger plane in history, and it could make Boeing the world’s largest plane manufacturer over No. 1 Airbus.

Boeing Defense, Space & Security’s third-quarter revenue fell 6% to $8.2 billion and operating margin was 8.4% on lower volume and margins in Network & Space Systems and Boeing Military Aircraft, the company reported.

Shares of Boeing (BA) rose 3.35% to 71.36 on the New York Stock Exchange on Wednesday. Analysts polled by Thompson Financial have set a median target level for the company’s stock at $82.50. The majority of analysts covering the company rate it as a “strong buy,” or a “buy.”