Boeing profits jump but commercial air deliveries fall
New York (AFP) – Aerospace giant Boeing said Wednesday declining costs boosted earnings for the latest quarter, but revenues missed analyst expectations as commercial plane deliveries dropped.
Net income for the quarter ending March 31 rose 19 percent to $1.5 billion.
But revenues fell 7.3 percent to $21 billion, below the $21.3 billion expected by Wall Street analysts. It was only the second time in 21 quarters the company disappointed expectations.
The aerospace giant has been trimming jobs in its civil aviation division due to slowing sales. Chief executive Dennis Muilenburg pledged to employ a “sharp focus on performance and productivity” to reach its financial targets.
Boeing delivered 169 commercial aircraft in the quarter, down seven from the same period of 2016. Commercial deliveries are closely scrutinized by Wall Street because of their connection to revenues.
Boeing modestly increased its full-year profit forecast by 10 cents a share to a range of $10.35 to $10.55, citing a lower-than-expected tax rate.
Shares fell 1.6 percent to $180.65 in pre-market trading.