Higher pension expenses hurt Boeing's third-quarter profit, but other measures for the big airplane maker and defence contractor were strong. Profits rose in both its commercial and defence units. And it reaffirmed plans to deliver 585 to 600 commercial planes this year.
Boeing shares jumped $2.17, or 3 per cent, to $74.99 in premarket trading. Boeing is one of the 30 stocks in the Dow Jones industrial average, which fell 243 points on Tuesday.
For the quarter that ended Sept. 30, Boeing's net income fell 6 per cent to $1.03 billion, from $1.1 billion a year ago. The profit of $1.35 per share would have been higher by 18 cents per share if not for increased pension expenses. During the same period last year, it earned $1.46 per share.
Analysts surveyed by FactSet were expecting earnings of $1.12 per share for the most recent quarter.
Revenue rose 13 per cent to $20 billion as the pace of commercial airplane deliveries picked up. That matched analyst expectations.
Chicago-based Boeing Co. now expects to earn $4.80 to $4.95 per share this year, up from previous guidance of $4.40 to $4.60 per share. Analysts had been expecting $4.72 per share.
Boeing's commercial airplanes unit saw operating earnings rise 6 per cent to $1.15 billion for the quarter. It delivered 149 planes during the most recent quarter, up from 127 a year ago. Boeing delivered its first 787 last year and has been speeding up deliveries in earnest. It is also speeding production of its profitable 777. Revenue from commercial planes jumped 28 per cent to $12.19 billion in the most recent quarter.
Earnings in Boeing's defence, space, and security unit rose slightly to $827 million. Revenue fell 4 per cent to $7.84 billion. Defence contractors in general have been struggling with tighter military spending, and the threat of more reductions to come, in both the U.S. and overseas.Suggest a correction