Boeing earnings soar 34% on taxes, solid deliveries

Boeing Co. reported a 34% rise in net earnings for the third quarter Wednesday based in part on favorable tax items and the timing of aircraft deliveries.

The Chicago-based company reported nearly $2.3 billion in net earnings in July, August and September, up from $1.7 billion.

Core earnings per share of $3.51 rose 39% from the same period a year earlier, beating the $2.62 per share predicted by analysts polled by S&P Global Market Intelligence. The results beat analyst estimates even after a tax adjustment of 70 cents per share that analysts hadn’t anticipated. A tax settlement of 28 cents per share dating to 2012 had been announced and was included in the estimates.

The earnings came on a 7.5% decline in revenue, to $23.9 billion. But costs and expenses also dropped 7.8%, to $19.9 billion.

Boeing CEO Dennis Muilenburg said in a statement that the results reflected solid performance across production of commercial and defense aircraft, while also positioning the company for the future.

“We achieved key milestones on the 737 MAX, 787-10 and other development programs, including the first KC-46 production contracts,” Muilenburg said. “We remain on track to deliver our full-year commitments.”

Revenue from commercial airplanes declined 4%, to $17 billion, on lower planned delivery volume of 188 planes compared to 199 for the same period a year earlier, the company said.

But Boeing said it began production of the 500th 787 Dreamliner during the quarter, completed service-ready validation of the 737 MAX 8 and began production of the 737 MAX 9.

The company booked 107 net orders during the quarter, with a backlog of 5,600 commercial plane orders valued at $409 billion.