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Boeing
Co.
BA 3.67%
Its business is booming, thanks to strong demand for commercial jets and new defense projects.
The world's largest aerospace company in terms of sales reported Wednesday announced quarterly earnings higher than expected in the third quarter and raised its revenue and profit outlook for the year.
Its shares rose by more than 4% in pre-market trading. The title, the largest component of the Dow Jones Industrial Average, has risen more than 18% this year.
Boeing is competing to meet global demand for passenger and freight aircraft. The group hopes to generate revenues of up to $ 100 billion for the entire year, up $ 1 billion from previous forecasts. Boeing also raised its earnings outlook for 2018, indicating that it was hoping to earn between $ 16.90 and $ 17.10 per share, up from previous forecasts, which stood at $ 16.60. .
Aircraft deliveries remain on track for the remainder of 2018, although Boeing has battled a bottleneck of suppliers for the 737 single aisle, its main financial insurer. Unfinished aircraft of this model piled up in one of its factories near Seattle. Boeing said production and deliveries would be restored by the end of the year.
Boeing's total order book reached $ 491 billion in the third quarter, up $ 3 billion from the previous quarter, representing more than 5,800 commercial aircraft.
Chicago-based Boeing also recorded a $ 691 million charge related to planned investments in two recent Pentagon contracts, which aims to attract more potential customers in an estimated $ 60 billion market for its aircraft. reaction training and its refueling drone.
Boeing has reinvigorated its defense business by winning three Pentagon contracts over the last few weeks, following the unit's four-year sales decline.
Managing Director Dennis Muilenburg said defense contracts were an important area for future growth for Boeing.
In the past, Boeing was struggling to complete its defense projects on time and within budget, including the new tankers it built for the US Air Force.
In total for the quarter, Boeing reported earnings per share of $ 4.07, up 36% from $ 2.99 for the same period last year. Excluding pension items, earnings per share was $ 3.58, exceeding Wall Street's expectations of $ 3.47, according to Factset. Revenues rose 4% to $ 25 billion.
Write to Andrew Tangel at [email protected] and Doug Cameron at [email protected]
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