The Boeing Company has reported strong earnings and operating cash flow in the second quarter of 2017, driven by improved operating performance.
Second-quarter GAAP earnings per share increased to $2.89 and core earnings per share (non-GAAP) increased to $2.55. Revenue was $22.7 billion, reflecting planned production rates and timing of commercial and defence aircraft deliveries.
For the full year, GAAP earnings per share guidance increased to between $11.10 and $11.30 from $10.35 and $10.55 and core earnings per share (non-GAAP) guidance increased to between $9.80 and $10.00 from $9.20 and $9.40, primarily driven by improved performance across the company and a lower-than-expected tax rate.
Operating cash flow guidance increased by $1.5 billion to $12.25 billion on solid execution and a cash tax benefit from accelerating pension funding in the third quarter of 2017.
Additionally, capital expenditures guidance decreased by $300 million to $2 billion.
“Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook,” said Boeing chairman, president and chief executive, Dennis Muilenburg.
“Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.
“In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defence, space and services, while achieving important milestones such as delivering the first 737 MAX airplane, flying the second production-ready T-X trainer aircraft, and conducting a successful Ground-based Midcourse Defence intercept test.
“As we look to the second half of the year, our teams are focused on accelerating productivity, quality and safety improvements across the company, while completing key development efforts and delivering better capabilities and economics to our customers.”