Boeing optimism soars on quarterly profits
The strong air-travel business continues to give a lift to Boeing, as the aircraft maker reported Wednesday that secondquarter profit rose 26 percent to $2.2 billion.
Boeing Co. raised its forecast for full-year revenue but left its profit outlook unchanged, reflecting continuing hitches in its program to build a new refueling tanker for the U.S. Air Force.
Chicago-based Boeing delivered 194 airline jets in the quarter, 11 more than a year earlier, and booked 239 new orders including 91 higher-priced widebody aircraft.
CEO Dennis Muilenburg said the market is putting pressure on Boeing to further increase production of some planes. Boeing executives said the company can meet promised aircraft deliveries despite problems in getting key components including fuselages and engines from suppliers.
"We are as optimistic about our future and the future of our industry as we have ever been," Muilenburg declared on a conference call with analysts and reporters.
Boeing's defense business, however, was less profitable than a year ago partly because of $426 million in unexpected higher costs related to the KC-46 refueling tanker. Boeing expects to deliver the first of the tankers to the Air Force in October, and executives said it will eventually begin contributing to cash flow, but not this year.
Boeing reported that its "core" profit excluding charges for the tanker and other items would have been $3.33 per share. Analysts surveyed by FactSet had expected $3.25 per share on average.