Seattle-based Boeing said it earned $654 million, or 75 cents a share, excluding a one-time charge for a planned rocket test, in the three months ended June 30. In the year-earlier period the company earned $520 million, or 56 cents a share, excluding a gain of $181 million from a tax settlement. Revenues dipped to $14.8 billion from $14.9 billion, excluding the extraordinary items.

Amid a string of jet orders and asset sales reported in recent weeks, Wall Street earnings forecasts for Boeing's second quarter had risen to a consensus of 67 cents a share as measured by First Call/Thomson Financial, which tracks earnings forecasts.

Analysts' initial response to the earnings report was favourable. They said the figures showed the company was sticking to its plan to boost profits by cutting costs, shedding underperforming units and avoiding a price war with rival Airbus Industrie.

"We've been positive on the company and this just reinforces that," said analyst Paul Nisbet of JSA Research. Boeing shares were up 3/8 at 45-1/2 in afternoon trading on the New York Stock Exchange.

Boeing raised its revenue estimates for 2000 to $51 billion from $50 billion and for 2001 to $53 billion from $50 billion.

The company cited strong commercial jet sales and forecasts that 2001 jet deliveries would rise 5 to 10 per cent from the 490 projected in 2000 - to roughly 515 to 540 units.

Boeing delivered 167 jetliners in the second quarter, many of which had been delayed when the Society of Professional Engineering Employees in Aerospace called a strike by some 18,000 workers last winter.

-- (Reuters)