On Wednesday, October 24th, Boeing’s profits surged in the 3rd quarter of this year after a favorable US tax settlement and some key annual projections.
The aerospace behemoth has been benefited from the boom in global air travel and also by airlines. The company reported profits of $2.4 billion for the quarter which ended on September 30th. The profits have jumped by 30.6 percent from the same time last year and revenues rose 3.8 percent to $25.1 billion.
The company has lifted its forecast for this year’s revenue by $1 billion to a range of $98-100 billion.
Dennis Muilenburg, the Chief Executive of the company stated that the company’s strong underlying performance and growth across the company business throughout the entire year has boosted the revenue’s of 2018.
The total sales for commercial airplane deliveries fell from the previous year but the profit margins in the overall business surged due to high production of its key airplanes.
The airplane manufacturer booked 171 net orders which were a decline from the previous quarter but it was above last years bookings.
However, the company’s defense business had an operating loss which was due to a one-time cost investment cost of $691 million. Boeing secured major new defense contracts for the quarter.
The airplane maker benefited by $412 million in 2013-2014 tax settlement and also set aside $112 million in higher costs for the KC-46 transport aircraft.
Boeing’s share price has gone up by 4.1 percent to $364.50 in pre-market trading.