New York, Bengaluru: Boeing Co reported a 33.7 per cent rise in quarterly profit on Wednesday and raised its commercial aeroplanes delivery forecast for the year, sending its shares higher. The world’s largest jetliner maker expects to deliver 745 to 750 commercial aeroplanes, up from its previous forecast of 740 to 745. The additional planes would boost revenue by $500 million (Dh1.8 billion), prompting Boeing to raise its year-end revenue target to between $93.5 billion and $95.5 billion.
“Solid operating performance across our commercial and defence and space businesses in the third quarter again generated strong cash flow for Boeing,” Chief Executive Officer Dennis Muilenburg said.
Operating cash flow rose 12 per cent to $3.2 billion.
Deliveries were down nearly 3 per cent from a year ago, reflecting slower production of profitable 777 and 737 models.
The closely watched deferred production cost balance for Boeing’s 787 Dreamliner, a tally of the manufacturing costs not yet recouped by sales, declined about $150 million in the quarter to $27.5 billion, reflecting the fact that the high-tech plane is now profitable by some accounting measures. The balance peaked at $28.7 billion in the first quarter and has declined since then.
Boeing’s earnings rose to $2.28 billion, or $3.60 per share, in the quarter, from $1.70 billion, or $2.47 per share, a year earlier.
Core earnings, which exclude some pension and other costs, rose to $3.51 per share from $2.52.
Both figures included a special gain of 70 cents a share, reflecting a tax benefit Boeing received by claiming more depreciation on plants and equipment than it had previously.
Factoring that out, core earnings were $2.81 a share, compared with the average analyst estimate of $2.62, according to Thomson Reuters I/B/E/S.
Total revenue fell to $23.90 billion from $25.85 billion.
Boeing shares dipped 0.4 per cent at $138.40 in premarket trading.
