Boeing Co. (Chicago) raised its 2017 profit forecast after posting higher first-quarter earnings.
The aircraft maker, as part of its earnings report, said it expects a 2017 profit of $10.35 to $10.55 a share. The previous forecast was a range of $10.25 to $10.45 a share.
The company raised the forecast for 2017 “core earnings,” which exclude some costs, to $9.20 to $9.40 a share, up from the previous $9.10 to $9.30 a share. Boeing said that forecast was raised mostly because of “a lower-than-expected tax rate.”
Boeing continues to trim factory and engineering jobs in the Seattle area as it seeks to make operations more efficient amid a slowdown in revenue. On March 31, the company conducted its first test flight of the 787-10 Dreamliner, the largest version of that model.
“We’re focused on accelerating productivity,” Chief Executive Officer Dennis Muilenburg said in a statement.
In the first quarter, Boeing reported a profit of $1.45 billion, or $2.34 a share, an increase from $1.22 billion, or $1.83, for the same period in 2016. The gain came despite a 7% decline in revenue to almost $21 billion.
Core earnings for the quarter totaled $1.7 billion, or $2.01 a share, up from $1.69 billion, or $1.74, a year earlier. The consensus of analysts surveyed by Reuters was for core earnings of $1.94 a share.
Boeing delivered 169 commercial aircraft during the quarter, down from 176 in the previous quarter. However, Boeing didn’t change its 2017 delivery forecast, which remains at 760 to 765 for the year.