Boeing 1Q earnings, revenue rise on aircraft sales

DALLAS —

Airlines around the world are updating their fleets with new, more fuel-efficient planes, and that’s good news for aircraft maker Boeing Co.

The Chicago company said Wednesday that first-quarter profit soared 58 percent, beating analysts’ expectations, as sales at its commercial airplane division surged. Even it defense business grew, although much more slowly.

Boeing delivered 137 commercial airplanes in the quarter, winning bragging rights over European rival Airbus, which had 131 deliveries.

Boeing’s backlog rose, partly on orders for a new, more fuel-efficient version of its venerable 737 jetliner. Chairman and CEO W. James McNerney Jr. said the company was focused on profitably boosting commercial airplane production and delivery rates.

The company’s stock price rose $3.19, or 4.4 percent, to $76.40 in morning trading. Before Wednesday, shares had been flat in 2012.

Boeing earned $923 million, or $1.22 per share, in the first quarter, compared with $586 million, or 78 cents per share, a year earlier. Excluding a gain from settling litigation, the company earned $1.11 per share, beating analysts’ expectations of 96 cents.

Revenue rose 30 percent, to $19.4 billion, topping analysts’ forecast of $18.5 billion.

The gains were driven by strength in sales of commercial airplanes, which trumped slow growth in the defense business. Boeing’s 137 deliveries compared with 104 commercial planes delivered in the first quarter last year.

The company’s commercial-plane backlog increased to $308 billion and had more than 300 orders for the 737 Max jetliner, which is expected to be ready in a few years to compete with the A320neo being developed by European rival Airbus. Both are single-aisle planes designed for short and medium-length flights.

In all, Boeing said it now has orders to build more than 4,000 commercial planes. The company did not comment on recent reports that it may be close to winning a big order from United Airlines. United has declined to comment.

Maxim Group LLC analyst Ray Neidl said the increase in deliveries showed that Boeing “is beginning to ring the cash register on its solid order placement.” He predicted that orders will continue to rise for both small and large commercial jetliners.

First-quarter revenue from commercial planes jumped 54 percent, to $10.94 billion, while revenue from defense and space work grew just 8 percent, to $8.23 billion, reflecting tighter government budgets. The backlog of military planes grew 20 percent to $72 billion on orders for F-15 fighter jets and C-17 cargo planes.

Boeing raised its profit forecast for 2012 because it expects to set aside less money for litigation. The company predicted it will earn between $4.15 and $4.35 a share this year, up from a January forecast of $4.05 to $4.25. The new figure is still below the $4.48 per share that analysts expect.

Citigroup analyst Jason Gursky said Boeing was being conservative by not raising its 2012 forecast more. He said the company was probably holding back because of recent tornado damage at a supplier in Wichita, Kan., and questions about how quickly it can increase production of its new, large 787 jetliner, which fell far behind schedule.

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Everybody Calm Down – The Market IS Recovering

It didn’t take long for the naysayers in real estate to jump all over the National Association of Realtors’ Existing Sales Report which was released last week. It is true that sales were down 2.6% from the previous month. However, monthly variations should not be the determining factor in deciding where the market is going. For example, in the same report, NAR explained that sales WERE UP 5.2% over last March’s numbers. The experts should look at the key underlying data that truly determines where the market will be heading. Here is what leading economists in the housing industry are saying: Paul Diggle, property economist, Capital Economics “March’s decline in existing home sales probably reflects the normal month by month volatility rather than renewed underlying weakness. The increase in households’ confidence in the outlook for the housing market, coupled with a gradual improvement in the pace of the economic recovery, should drive a rise in home sales later this year….It is possible that the pattern within the quarter has been driven by the weather, with falls in the most recent two months reflecting a degree of payback after January’s gain.”  Doug Duncan, chief economist, Fannie Mae “Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.” Celia Chen, senior director of housing economics, Moody’s “The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010.” Mark Vitner, senior economist, Wells Fargo “Existing home sales dropped 2.6 percent, but are up 5.2 percent from a year ago. While existing sales are down for the second consecutive month, we are likely continuing to see payback from increases earlier this year. That said, we could see one more month of disappointing data, but we still contend the recent declines are not indicative of the trend. Stabilization will become more apparent once we return to normal weather.” Mark Fleming, chief economist, CoreLogic “Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s …While real estate professionals often say that “now is a good time to buy,” it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.” via kcmblog.com

Mukilteo Garagae Sale – April 28th

Hundreds of households will participate in the annual event on Saturday, April 28, but only the smart ones will place an ad seen by thousands of potential buyers. Still only $10 and includes a FREE garage sale sign. Listings will be published in both the Mukilteo and Edmonds Beacon newspapers that week. Don’t be left out! Forms are available in the Beacon every week.

Housing Hope offers nonprofits revenue tips

Lean economic times and the corresponding reduction in state and federal funding are forcing nonprofit organizations to look at new ways to generate revenue, and to do it on a sustainable basis.

One approach, called “social enterprise,” is to develop revenue-generating business that can earn unrestricted income and increase visibility. HopeWorks Social Enterprises, established in 2010 by Housing Hope, is hosting a series of workshops to assist nonprofits in understanding the opportunities and challenges associated with successful social enterprise.

The workshops will be conducted at the Housing Hope Village, 5908 Evergreen Way, Everett, offering dynamic, interactive sessions featuring technical training, featured speakers and updates from local social enterprise initiatives. They will include case studies and best practices from the field, technical training, input from fellow participants and guest speakers.

· David Simienski, Founding and Managing Director of Credit Advantage is the featured speaker – May 2, 2012

David shares experiences of creating social enterprise for banking solutions for low-income and “unbanked” customers.

· Writing a Business Plan – June 6, 2012

This hands-on workshop will provide technical assistance for creating a social-enterprise business plan.

The cost for each is $10. Agencies are encouraged to send multiple staff members. To register, contact Mary Jonasen at maryjonasen@hopewrks.org or 425-347-6556, ext. 242.

Food Revolution Snohomish County – Free Food Festival May 20th in Lynnwood

Food Revolution Snohomish County, a movement aimed at encouraging growing, cooking, preserving, and eating real healthy food, brings a new community event to Lynnwood.

The Celebration of Food Festival will be a free, family event where participants can taste, explore, and experience real food from  11 a.m. to 5 p.m., Sunday, May 20, at the Lynnwood Convention Center, 711 196th Street Southwest, Lynnwood, 98036.

“This event brings together people who are passionate about delicious, local, wholesome food,” said organizer Chris Hudyma. “Farmers, ranchers, culinary professionals, youth, students, and business owners will offer activities to inspire the enjoyment of real food.”

The Celebration of Food Festival is sponsored by Cascade Harvest Coalition, Cedar Grove Composting, Central Market, City of Lynnwood, Edmonds Community College, Sno-Isle Food Co-op, Verdant Health Commission, and Whole Foods Market Lynnwood.

The event will include free samples, demos, displays of foods in categories throughout the center: Surf & Turf, Sweet & Nutty, Kickin’ Flavor, Veggies & Fruit, Great Grains, and Preservation.

Fifty vendors are confirmed to be at the event including: Hot Cakes Confections (owned by Edmonds Community College Distinguished Culinary Arts Alumna Autumn Martin), Taylor Shellfish, Manna Mills, Pappardelle’s Pasta, Four Sisters Gourmet Sauces, and Theo Chocolate.

Farms from throughout the region will be represented including: Aldrich Farms of Bellingham, Chinook Farms of Snohomish, Garden Treasures Organic Farm of Arlington, Klesick Family Farm of Stanwood, Ninety Farms of Arlington, Willie Green’s Organic Farm of Monroe, and Rubberneck Farms of Edmonds, and local farmer’s markets.

There will also be demonstrations by farm and garden professionals including WSU Snohomish County Extension to show how to grow food and where to purchase locally grown food.

Experts and resources will be available to help both children (with help from Imagine Children’s Museum and Readers to Eaters) and adults to learn everything about growing, cooking, and preserving food.

For more information, email foodrevsnoco@edcc.edu, go to www.edcc.edu/foodfest, or connect with Food Revolution Snohomish County on Facebook www.facebook.com/foodrevsnoco.

 

Mukilteo Elementary – Leader in Me Lighthouse School

 

At Mukilteo Elementary, students are learning much more than the three Rs – they also are learning how to be tomorrow’s leaders.

The school held its second Leadership Day on March 15 to share how seven habits of leadership have been incorporated into the curriculum.

About 100 educators from across the U.S. and Canada got to see firsthand how Mukilteo Elementary is developing leaders with the skills needed for success.

Mukilteo Elementary is one of the first schools in the state to implement the Leader In Me program, which integrates Steven Covey’s “Seven Habits of Highly Effective People” into the school culture. The program aims to empower students and unleash their full potential.

The program is also being implemented at other elementary schools in the Mukilteo district, including Endeavour, Serene Lake, Columbia and Fairmount.

The “Seven Habits” teaches students how to be responsible, show initiative, be creative, set and meet goals, get along with people of various backgrounds and cultures, resolve conflicts and solve problems.

“We’re really passionate about it; we really see it’s going to make a difference for our kids,” Mukilteo Elementary principal Pat Cushing said.

“We really believe that with every fiber of our being, and we believe in it so much that we want to share it with other educators.

“If all of our youngsters are learning these seven habits, what is going to happen is we’re going to change the world.”

Mukilteo Elementary was presented the Lighthouse School Award last week, meaning the school is a “beacon” for all other schools in implementing the Leader In Me program. The school is the 24th in the U.S. and Canada to receive the honor.

The school is in its second year of implementing the three-year Leader In Me program into the school culture and as a learning tool.

The teachers were trained first, then integrated the habits into the lessons and the classroom language.

“The kids embrace [the habits] so well because they make sense,” third grade teacher Lindsay Middaugh said. “They give us a common language to work with.

“All I have to do is say the words, and they know exactly what I mean.”

In addition to the curriculum and instruction, Mukilteo Elementary integrated the seven habits into the school culture through signs, inspirational quotes, new systems and new traditions.

“If we teach our children really strong habits, and they are able to be competent learners in that they are able to understand where their goals are and how they are going to meet those goals… then they’ll be prepared to solve 21st century problems,” Cushing said.

Covey’s “Seven Habits” teaches businesses to train employees for success. His follow-up book, “The Leader In Me,” teaches the habits to children.

Mukilteo Elementary is already seeing results, such as higher academic achievement, fewer discipline problems, and increased engagement among teachers and parents.

“We’re seeing a lot of changes in our school,” Cushing said. “The kids are nicer to each other. Students are saying bullying has gone down.”

The seven leadership habits are:

• Be Proactive

• Begin with the End in Mind

• Put First Things First

• Think Win-Win

• Seek First to Understand, Then to be Understood

• Synergize

• Sharpen the Saw

Fourth grader Chloe Dylla said the habit Put First Things First has helped her stop procrastinating.

“I put first things first and I get my homework done, and then I have the rest of the afternoon to play,” she said.

Fourth grader Sloane Laudenback said the habit Sharpen the Saw changed his life. Sharpen the Saw means to take time to relax the body and mind, such as through a hobby.

“It means to eat healthy and sleep well, it means to keep active and keep your mind open to new ideas,” he said. “All of these things keep your body and mind healthy.

“It helps you have a well-rounded life and helps you to want to learn and take part in all the other habits.”

To learn more about the Leader In Me program, go to www.theleaderinme.org.

Easter Egg Hunt!

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Mukilteo Firefighters Annual Hunt at Mukilteo Elementary!