Boeing reports weaker profits as commercial jet deliveries slow
Aerospace giant Boeing reported weaker-than-expected profits for the first quarter of its fiscal year as a result of a charge linked to its air-tanker programme and a slowdown in sales of commercial jets, although increased deliveries of military aircraft helped to prop up the top-line.
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11:10 14/11/24
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First quarter profits declined from $2.1bn or $1.97 a share one year ago to $1.69bn or $1.74 on an adjusted basis.
That was considerably less than earnings per share of $1.84 pencilled in by analysts and included a 24 cent or $156m after-tax extraordinary charge linked to the KC-46 tanker project.
Performance on the top-line was a bit better, with sales rising 2.2% year-on-year to reach $22.63bn (consensus: $21.5bn).
Free cash flow improved from -$486m one year ago to $483m in the latest quarter.
During the first three months of the year, the manufacturer, one of the world´s two largest together with Airbus, delivered 175 commercial airplanes, down by 4.3% against a year ago.
That weighed on sales at its commercial segment, which declined 6.4% to $14.4bn.
Increased deliveries of F-15 fighter jets and C-17 military transport planes on the other hand helped to boost sales at its defence unit by 34% to hit $3.66bn.
Chicago-based Boeing reiterated guidance for full-year EPS of between $8.15 and $8.35 on the back of between $93bn to $95bn in sales.
Earlier in the year, management forecast a dip in commercial aircraft deliveries from the previous year´s record high of 762 to between 740 and 745 jets.
As of 13:44 BST stock in Boeing was 0.04% higher at $133.29.