Boeing profits jump 38% to $1.2 billion as orders grow

The results were better than expected and fueled a rally in Boeing shares, rising in midday trading by 5%.

Revenues for the company's defense unit, the largest private employer in Southern California, slipped slightly but earnings rose thanks to lower expenses.

The company employs about 31,000 workers in the region.

In a conference call with analysts, Boeing's chief executive Jim McNerney said global demand for commercial airplanes "remains strong" and predicted that record fuel prices could, "if anything," push airlines to accelerate plans to replace aging, gas-guzzling aircraft.

McNerney said the company was monitoring the latest financial woes of domestic airlines but said that the gloomy economic outlook had not affected aircraft sales so far. He said about 11% of the aircraft orders are from U.S. customers and that the world's largest aerospace company has enough orders to keep production rolling for six years.

Boeing, headquartered in Chicago, said net income climbed to $1.2 billion, or $1.62 a share, compared with $877 million, or $1.13 a share, in the year-earlier period. Analysts anticipated earnings of $1.35 a share.

Revenues rose 4% to $16 billion from $15.37 billion a year ago.

peter.pae@latimes.com