Boeing Co. (Chicago) and Ford Motor Co. (Dearborn, MI) posted quarterly profits representing improved financial performance from a year earlier.
Boeing’s second-quarter profit showed the aircraft maker bounced back from a year-earlier loss, the company’s first quarterly deficit since 2009.
The company reported a quarterly profit of $1.76 billion, or $2.89 a share. In 2016’s second quarter, Boeing suffered a loss of $234 million, or 37 cents. The improved performance came despite a fall in revenue to $22.7 billion from $24.8 billion a year earlier.
The aircraft maker said “core” operating earnings totaled $2.2 billion, or $2.55 a share, compared with a year earlier deficit of $488 million, or 44 cents.
“Our teams are delivering better performance in every segment of the business,” CEO Dennis Muilenburg said in a statement.
Boeing’s commercial aircraft deliveries for the quarter fell to 183 from 199 a year earlier. The company has been cutting jobs to reduce costs to make up for declining revenue and deliveries.
For the year’s first half, Boeing reported a profit of $3.2 billion, or $5.22 a share. That compares to a first-half 2016 profit of $985 million, or $1.51. First-half revenue declined to $43.7 billion from $47.4 billion a year earlier.
Boeing raised its 2017 forecast to a profit of $11.10 to $11.30 a share, up from a previous forecast of $10.35 to $10.55. Its forecast for “core” operating earnings was increased to $9.80 to $10 a share from a previous forecast of $9.20 to $9.40. Boeing maintained its forecast for commercial aircraft deliveries at 760 to 765.
Ford posted a second-quarter profit of $2.04 billion, or 51 cents a share, compared with a year-earlier profit of $1.97 billion, or 49 cents. Quarterly revenue rose less than 1% to $39.9 billion.
The quarterly results were the first reported under new CEO Jim Hackett, who took the helm after his predecessor Mark Fields was forced out in May.
“This quarter shows the underlying health of our company,” Hackett said in a statement. The CEO previously headed Ford’s Smart Mobility unit. He got the top executive job to spur change at Ford as the industry develops self-driving cars.
For the quarter, Ford’s biggest earnings source was its North America unit, which generated $2.2 billion in pretax profit of $2.2 billion, down about $500 million from a year earlier.
Like other automakers, Ford is seeing deliveries of cars plunge while truck sales rise. Ford’s total first-half light-vehicle deliveries fell 3.8% compared to the same period in 2016, according to Autodata Corp. Ford’s light truck sales rose 3% but its car deliveries slid 20%.
Ford also reported a pretax profit of $88 million in Europe and $143 million in its Asia Pacific Region. The company’s South American operations generated a pretax loss of $185 million.
For the year’s first half, Ford reported a profit of $3.63 billion, or 91 cents a share, down from $4.4 billion, or $1.11, for the same period in 2016. Revenue rose to $79 billion from $77.2 billion.