Boeing's profit jumped by more than half in the first quarter, surging past Wall Street forecasts, and strong sales of commercial jets led it to raise its forecasts for cash flow and earnings after a record 2017.
After fellow manufacturer Caterpillar unnerved stock markets by warning of rising metals prices yesterday, the world's biggest planemaker said in its quarterly results today that margins had improved at the start of 2018.
Core earnings, which exclude some pension costs, jumped to $3.64 per share from $2.17 per share a year earlier, dwarfing a consensus forecast of $2.58 per share according to Thomson Reuters.
Boeing said it sold a record 763 aircraft last year and has already announced a rise in commercial deliveries in the first three months of the year.
It raised its full-year operating cash flow forecast to $15.0 billion-$15.5 billion from about $15 billion, previously.
The company also increased its 2018 core earnings per share forecast to $14.30-14.50 from its previous projection of $13.80-$14.
Core operating margin rose to 10.7% from 8.5% a year earlier while revenue rose 6.5% to $23.38 billion, beating expectations of $22.26 billion.
The results follow those of heavy equipment maker Caterpillar, whose shares tumbled yesterday after the company cautioned it would not have the same pricing power to pass on increased costs of material such as steel.
US President Donald Trump's crackdown on steel and aluminum imports, with tariffs of 25% for some steel products and 10% for aluminum products, has constrained supplies in the domestic market, inflating costs of the metals.
Boeing's commercial aircraft deliveries rose 9% to 184 in the first quarter ended March 31, largely seen as the result of booming passenger air travel and resulting orders from airlines.
The company also said it planned to increase production on its 767 aircraft programme from 2.5 to 3 per month beginning in 2020, reflecting strength in the global cargo market.
Global freight traffic grew on average by 7.7% in January and February, marking the strongest start to the year since 2015, according to the International Air Transport Association.
