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US aerospace giant Boeing reported Wednesday a swing into profit in the fourth quarter on soaring sales but said it faces "significant" challenges that could impact results in 2010.
Boeing posted fourth-quarter earnings of $1.27 billion, lifted by a surge in revenues.
The aerospace giant's earnings amounted to $1.75 per share, well ahead of analyst expectations of $1.36 a share.
The results compared with a loss of $86 million in the same period a year earlier, when earnings were hit by a machinists strike and charges to modify its 747 aircraft.
Revenues for the October-December period rose 42 percent to $17.9 billion, slightly better than expectations.
"We put a strong finish on 2009 by getting the 787 in the air and generating solid core operating performance across the company," said Jim McNerney, Boeing chairman, president and chief executive, referring to the new Dreamliner aircraft whose first test flight took place last month.
"Focus areas for 2010 are to continue our strong operational performance, certify and deliver the 787 and 747-8, and further reposition our defense, space and security business.
"While the challenges ahead are significant, I believe we have the people and the resources we need to be successful and to begin consistently delivering on this company's great potential."
For all of 2009, Boeing said it had net profit of $1.31 billion, less than half it made in the prior year.
Full-year revenue rose to "a record" $68.28 billion, the Chicago-based firm said, a 12 percent rise from 2008 driven by an increase in commercial aircraft sales and growth in the defense unit.
Earnings per share were $1.84, also beating analysts' expectations of $1.44 and the company's own guidance of $1.35 to $1.55
The commercial aircraft division had a net loss of $600 million for the year due developments with the much-delayed new 787 Dreamliner program and the wide-body 747, the firm said.
Orders stood at 3,375 aircraft valued at $250 billion, more than seven times the unit's 2009 revenue. Boeing said it expects to deliver 460-465 aircraft this year.
Boeing said the remaining four test-flight 787s were expected to be flying by the end of the second quarter of 2010. It reconfirmed the scheduled delivery of the first plane, to Japanese launch customer All Nippon Airways, for the fourth quarter.
Firm orders for the next-generation Dreamliner, which the company says will use 20 percent less fuel than similar aircraft, stood at 851 airplanes from 56 customers at the end of 2009.
Boeing, the second-largest US defense contractor after Lockheed Martin, said defense unit sales rose five percent from a year ago, with an operating margin up two percent.
For 2010, Boeing said it expects revenue of $64 to $66 billion that reflects production rate reductions on the 777 jetliner and reduced scope on US Army modernization and missile defense.
Guidance of earnings per share between $3.70 and $4.00 reflected the expected lower revenue, and development program and market risks, it said.
Some analysts said the earnings outlook was disappointing, well below the consensus forecast of $4.26
"Lower deliveries in 2010, the impact of low margin 787, and additional consideration for development costs related to the 787 and 747-8 platforms likely account for the bulk of the difference in 2010 profitability," said Matthew Vittorioso of Barclays Capital.
"While the 2010 margin guidance came in short of expectations, we continue to think that the strong balance sheet metrics should keep leverage low until we begin to see signs of a turnaround."
Boeing shares soared 4.16 percent to $60.11 in New York morning trade.
