CHICAGO • Boeing Co rose as better than expected cash and profit signalled that trade tensions haven’t yet hurt the largest US exporter’s plane-making business.
Free cashflow climbed to US$2.74 billion (RM10.73 billion), the company said in a statement yesterday. That topped the average analyst estimate of US$1.49 billion, a sign the company’s underlying business remains healthy. Boeing also raised its 2018 profit forecast.
The robust results underscored the strengths that made Boeing the best performer on the Dow Jones Industrial Average for most of the past year.
The company was recently dethroned by Cisco Systems Inc as US President Donald Trump’s trade salvos rattled markets. Investors sold off Boeing as aluminium prices went on a wild ride, and again when China threatened penalties for the 737, the manufacturer’s largest source of profit.
“Boeing appears a natural casualty in a trade war, as one of the most visible American exporters,” Robert Spingarn, an analyst at Credit Suisse Group AG, said in a report before the earnings were released. “Most of the impact seems to be limited to the share price rather than the fundamentals.”
Adjusted earnings rose to US$3.64 a share, Chicago-based Boeing said in the statement. That was more than the US$2.58 average of estimates compiled by Bloomberg. Revenue increased 6.5% to US$23.4 billion. Analysts had predicted US$22.2 billion.