The Boeing Company (NYSE:BA) announced better than expected first quarter results. Analysts were worried that the battery problems related to its 787 Dreamliner planes could hamper the company’s earnings. Regulators in the U.S and Japan had instructed airlines to temporarily ground the planes.

Boeing 787

The aerospace giant reported a net profit of $1.11 billion or $1.44 per share, compared to $923 million or $1.22 per share in the first quarter of 2012. This year’s first quarter earnings include 19 cents a share of tax benefit. Excluding one time items, earnings came at $1.73 per share, up 24 percent from $1.40 per share in Q1 2012. Profits from its defense business increased from $742 million to $832 million, while the commercial airline business posted a 13 percent rise in profits to $1.2 billion.

Revenues for the quarter declined 2.5 percent to $18.89 billion from $19.38 billion in the same period last year, due to decreased delivery of the troubled 787 Dreamliner. Wall Street was expecting $1.49 per share in earnings and $18.8 billion in revenues. The company remains optimistic about its full-year estimate of $4.05 to $4.25 per share, excluding 83 cents in pension expenses. Most importantly, The Boeing Company (NYSE:BA) didn’t take any special charges over the 787 Dreamliner issues.

The Boeing Company (NYSE:BA)’s defense division remains under pressure amid sequestration. In November 2012, the company decided to cut executive ranks in the defense business in an attempt to reduce costs. The Boeing Company (NYSE:BA) Chairman and CEO Jim McNerney, said that the aircraft giant’s first priority is to restore the troubled 787 fleets and resume production deliveries.

After the solid earnings report, The Boeing Company (NYSE:BA) shares jumped 4.47 percent to $92.12 at 9:34 AM EDT.