Boeing is optimistic about the future

Boeing revenues grew 15% to $15.03bn in the second quarter as sales of commercial aircraft rebounded.

However, the company reported a 7% drop in second-quarter net profit to $566m (�326m). The fall was partly down to a one-off charge for asset sales.

Boeing raised its forecast for commercial plane deliveries in 2006 from between 375-385 to 395.

The group also increased its profit forecast for this year to earnings per share of between $2.75 to $2.85 against the previous estimate of $2.40 to $2.60.

Chief executive and chairman Jim McNerney said the firm's commercial airplanes revenue grew 20% and that "cash flow was outstanding".

Rivals

Boeing added that improved productivity at both its defence unit and commercial planes business had helped boost profits.

The firm, which was overtaken as the world's biggest commercial airline maker in 2003 by Airbus, has seen orders for new airlines surge as airlines - in particular no-frills firms - increase their spending on new aircraft.

"The bottom line is that the operating engine of our company is getting stronger," Mr McNerney said.

"I'm committed to turning up the game on what already is a strong focus on execution throughout our businesses," he added.

Earlier on Wednesday, Boeing's European rival Airbus had said its profits for the first half of the year had more than doubled thanks to strong plane orders.

Boeing is currently embroiled in a World Trade Organisation dispute with Airbus.

The US has accused Airbus of receiving illegal state aid. The European Union has filed a counter complaint against Boeing, arguing that tax breaks and grants received by the firm are "prohibited and actionable".