The aviation, aerospace and defense group upgraded its profit outlook.

Net profit amounted to 623 million dollars, or 77 cents a share, in the three months to March 31, after a year-earlier loss of 478 million dollars, or 60 cents a share.

Sales rose 5.7 percent to 12.96 billion dollars.

"Boeing's first-quarter 2004 results reflect our drive to improve profitability through intense focus on execution across all of our businesses," Boeing president and chief executive Harry Stonecipher said in a statement.

"Integrated Defense Systems delivered another strong quarter of revenue growth and margin performance as it executed on its large backlog of key defense programs," he added.

"Boeing Commercial Airplanes is generating solid profitability at the bottom of the commercial airplane cycle, while investing for future growth in the new 7E7 airplane, which received a launch order for 50 airplanes from All Nippon Airways this week."

Boeing on Monday formally launched the 7E7 aircraft program after receiving a record six-billion-dollar order from All Nippon Airways for the super-efficient "Dreamliner."

The aircraft is seen as vital to the US aerospace giant if it is to regain its spot as the world's number-one manufacturer, a position it lost last year to Europe's Airbus.

The US group also upgraded its outlook, partly because of improved prospects for commercial airplanes.

Boeing said it expected to deliver about 285 airplanes in 2004 and then 300 in 2005, driven by better demand for single-aisle aircraft. Previously, it had expected 2005 sales to be unchanged from 2004.

Revenue in 2004 was expected to be about 52 billion dollars, unchanged from the previous forecast. But for 2005, Boeing said it now expected 57 billion to 59 billion dollars in revenue, up from 55 billion to 57 billion dollars previously.

Earnings per share were now expected to be 2.05 to 2.25 dollars in 2004, up from a previous forecast of 1.75 to 1.95 dollars. For 2005, earnings per share were forecast at 2.20 to 2.45 dollars a share, up from 1.95 to 2.20 previously.

Boeing said integrated defense system sales surged 18 percent to 7.4 billion dollars in the quarter and earnings from the sector leapt to 738 million dollars from 31 million. Revenue from warplane and weapons systems alone jumped 13 percent.

Boeing said its commercial airplanes business tightened its operating performance, while increasing investment in the 7E7.

On Monday, Boeing announced Japan's All Nippon Airlines would purchase 50 of its new 7E7 Dreamliner jets in a deal worth six billion dollars.

It is Boeing's first new jet in over a decade and the largest-ever launch order.

In a note, Merrill Lynch analyst Byron Callan noted that the division's 6.6 percent operating margin after taking out research and development costs was better than expected.

He also said that the unit has increased its jet deliveries for 2005 to 300, and the order book is 92 percent sold out, heralding the "beginning of upturn."

During the first quarter, deliveries of commercial airplanes increased seven percent from a year earlier to 76 airplanes, but revenues from the business fell six percent.

Shares in Boeing were trading up 1.06 dollar, or 2.43 percent, at 44.61 dollars just before 1700 GMT.

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