Tags: boeing | profit | aerospace | earnings

Boeing Lifts Profit Forecast but Sees Higher Tanker Costs

Boeing Lifts Profit Forecast but Sees Higher Tanker Costs
Nicholas-Haig/Dreamstime

Wednesday, 25 October 2017 11:16 AM

Boeing reported mixed results Wednesday, lifting its full-year profit forecast, but announcing that costs on a high-profile tanker program had once again risen unexpectedly.

Net income fell 18.7 percent to $1.9 billion for the quarter ending September 30.

Revenues rose 1.7 percent to $24.3 billion.

Boeing said costs on the KC-46 military refueling tanker had risen again, with $329 million in additional spending due to changes as the venture moves into late-stage testing and certification.

Boeing booked expenses of more than $1 billion on the tanker in a series of announcements in 2015 and 2017. The Air Force tapped Boeing in 2011 for the contract, which Boeing said in a July securities filing was worth $4.9 billion.

The aerospace giant lifted its full-year profit forecast range by a dime to $11.20 to $11.40 per share, citing a lower-than-expected tax rate. There was no change to the forecast for revenue or commercial plane deliveries.

Boeing's commercial division delivered more planes in the third quarter compared with the year-ago period, but the increase came from the narrow-body 737, which is less costly than some other models.

Still, the division's profit margin rose compared with the year-ago period.

Revenues and profits in Boeing's military division declined, although analysts believe additional orders in defense should fuel growth in the coming period.

"Our teams across all three business segments are driving execution with a focus on both productivity and growth, which has enabled Boeing to deliver solid third quarter financial results, grow cash flow, and raise our 2017 outlook," said chief executive Dennis Muilenburg.

Analysts at JPMorgan Chase characterized the results as "solid" and that they "largely (meet) our expectations on several fronts."

Boeing also launched a global services division intended to provide maintenance and services. A note from Canaccord Genuity said the push by Boeing would likely provide cost savings opportunities.

Boeing shares dropped 1.2 percent to $262.93 in morning trading.

© AFP 2018

   
1Like our page
2Share
Companies
Boeing reported mixed results Wednesday, lifting its full-year profit forecast, but announcing that costs on a high-profile tanker program had once again risen unexpectedly.
boeing, profit, aerospace, earnings
317
2017-16-25
Wednesday, 25 October 2017 11:16 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved