Boeing 1Q Earns Rise 27 Percent

Jim McNerney, chairman, president and chief executive of Boeing Co., speaks at a news conference in Chicago, Tuesday, April 24, 2007. Boeing said Wednesday, April 25, 2007, that its first-quarter earnings climbed 27 percent, thanks largely to robust orders for commercial airplanes and strong defense business. (AP Photo/Charles Rex Arbogast) (Charles Rex Arbogast - AP)

CHICAGO -- Boeing Co. put more pressure on its European rival Airbus Wednesday in the dog fight for the slot as the world's No. 1 airplane maker.

Boeing reported a 27 percent boost in first-quarter earnings that beat Wall Street projections, while its backlog surged to another record level. Meanwhile, its revenue grew 8 percent.

"Boeing is gaining market share and doing it very profitably. That's a tough competitor," said Richard Aboulafia, an airline analyst with Teal Group. "Usually, it's a choice: market share or profit. To be able to do both at this rate is a serious threat for Airbus."

Earlier this year, Boeing surpassed Airbus in plane orders, but the European company delivered more aircraft and held its position as the world's top airplane manufacturer. Boeing is expected to outpace Airbus' deliveries next year.

"We are off to a good start in 2007," said President and Chief Executive Jim McNerney. "Our record backlog, increasing productivity, and the progress of our development programs have us on track to achieve our growth and productivity objectives."

Chicago-based Boeing earned $877 million, or $1.13 per share, in the quarter ended March 31, compared with $692 million, or 88 cents per share, a year earlier.

Revenue climbed 8 percent to $15.4 billion, beating Wall Street expectations. During the year-ago period, Boeing had revenue of $14.3 billion.

On average, analysts surveyed by Thomson Financial forecast earnings per share of $1.01 on revenue of $15.02 billion.

The company said its backlog climbed 23 percent to a new record _ $262 billion _ thanks to strong commercial plane and defense orders.

Boeing has bet its more fuel-efficient Dreamliner will win more of the lucrative market for long-range, midsized planes than the Airbus A350. Boeing's plane is expected to begin service in May 2008, while its first flight is targeted for late August.

Meanwhile, Airbus continues to struggle with its superjumbo A380, the world's biggest passenger airplane, which has been beset by two-year delays that have prompted customers to cancel their orders for cargo-versions of the plane.

"Because the markets and our customers are accepting our technology, the backlog represents to all of us at Boeing both a huge opportunity and a big burden to get it done properly," McNerney said.