Boeing soars despite Dreamliner problem

Despite a very rough start to 2013 with the grounding of its new signature airplane, Boeing is reporting a strong first quarter and continued growth throughout the year.

Boeing’s net income rose 20 percent in the first quarter despite its troubles with the 787.

The big airplane maker earned $1.11 billion, or $1.44 per share. Excluding pension contributions, Boeing would have earned $1.73 per share, well above analyst expectations.

Boeing’s revenue for the first quarter was down about $500 million, as compared to 2012, with just under $19 billion for the quarter. That’s a reflection of the 787 grounding and the inability to deliver the plane to customers.

The 787 was grounded in mid-January after batteries smoldered on two planes, including a fire on one. Boeing has gotten clearance from the Federal Aviation Administration for a redesigned battery system that the company says should sharply reduce the risk of a fire. Once the FAA approves the fix on individual planes, airlines can start using them again.

Boeing delivered 137 commercial planes in the first three months of the year, but only one of them was a Dreamliner.

Even with that, Boeing still expects to deliver more than 630 commercial airplanes boosting revenue to $82 to $85 billion for the year.

Boeing said on Wednesday that it will still meet its financial and delivery targets this year. That includes delivering at least 60 787s. Production of the plane has continued, so once Boeing installs a redesigned battery system, it will be able to hand 787s over to customers relatively quickly.

The Associated Press contributed to this report.