Boeing raises its annual profit forecast

Boeing has raised its profit forecast for this year and says it has a record backlog of orders.

The company now expects to make between $8.10 and $8.30 per share, up from its previous guidance of between $7.90 and $8.10 per share.

Boeing valued its order backlog at a record $490bn at the end of the third quarter, up from $440bn at the start of the quarter.

In the third quarter it made $1.36bn, up 17.6% on the previous year.

"With three solid quarters behind us and confidence in our ongoing performance, we are increasing our earnings per share outlook for 2014," said Boeing chief executive Jim McNerney.

Boeing booked 501 orders in the third quarter, with 100 of those coming from Ryanair when it signed an order for fuel-efficient 737 MAX 200 aircraft.

Demand for the 737 jet is so strong that Boeing is raising production from 42 per month to 52 per month in 2018.

However, the profit margin on commercial jets fell to 11.2% in the third quarter, from 11.6% in the same period in the previous year.

Boeing said the fall was because it delivered more 787 and 747 jets in the quarter, which are less profitable than other aircraft.

Revenue at its military aircraft business rose 3% to $3.5bn, helped by increased deliveries of the P-8 reconnaissance jet.