Boeing ups its earnings forecast for the year after profits top expectations

 
Rebecca Smith
Profits lifted at Boeing, but revenues dipped
Profits lifted at Boeing, but revenues dipped (Source: Getty)

Boeing has flown to a quarterly profit and bumped up its full-year earnings outlook as a result, sending shares surging more than eight per cent.

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The figures

The aerospace giant lifted its forecast for adjusted earnings this year, to $9.80 to $10 a share, up 60 cents a share.

Boeing earned $1.76bn (£1.35bn) or $2.89 per share for the quarter ended 30 June, compared with a loss of $234m the year before, when the firm dealt with hefty charges.

Revenues came in at $22.7bn, just below analysts' expectations. Boeing had said it delivered 183 commercial aircrafts in the second quarter, down eight per cent from the same time the year before.

It reported operating cash flow of $5bn, and bought back 13.6m shares for $2.5bn. Operating cash flow guidance has been increased by $1.5bn to $12.25bn.

Why it's interesting

The aerospace giant has been working on streamlining efficiency, with a raft of job cuts during the first half of the year. And in June, Boeing said it was cutting around 50 executives as it restructures its defence and space business into smaller units.

It has also recently pledged further growth within the UK, as the firm said it has tripled direct spending with British suppliers over the past six years to £2.1bn.

Read more: Airbus has tied up a massive deal to sell 140 planes to China

What the company said

Chairman, president and chief executive Dennis Muilenburg, said:

Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook.

Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.

He added: "In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defense, space and services, while achieving important milestones such as delivering the first 737 MAX airplane, flying the second production-ready T-X trainer aircraft, and conducting a successful ground-based midcourse defense intercept test."

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