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Boeing flies past forecasts, sees no sign of cost trouble

Reuters
April 25. 2018 8:50PM




Boeing Co.'s profit surged past Wall Street estimates in the first quarter and booming demand for commercial jets pushed the world's biggest planemaker to raise forecasts for cash flow and earnings in what promises to be another record year. New Hampshire is home to more than 100 companies that are vendor/suppliers to Boeing.

Speaking after the results, Chief Executive Officer Dennis Muilenburg also played down concerns expressed by fellow U.S. manufacturing export giant Caterpillar about rising materials costs, which could squeeze profit margins.

Boeing's core earnings, which exclude certain pension costs, jumped to $3.64 per share from $2.17 a year earlier, dwarfing a consensus forecast of $2.58 per share and sending its shares as much as 4.5 percent higher.

"We're not seeing anything there (in costs) that's a material effect right now," Muilenburg said.

President Donald Trump's crackdown on steel and aluminum imports has constrained supplies in the domestic market, inflating costs of the metals.

Muilenburg said he does not anticipate a full-blown trade war between the United States and China, as both countries seem to working towards finding negotiated solutions.

"While some initial statements have been made about potential tariffs, none of those severe actions have been implemented. And we're frankly encouraged by the continuing dialog," he said.

Boeing was seen by investors as one of the big potential losers when Trump unveiled a 10-percent tariff on aluminum on March 8, but those worries have eased somewhat and its shares are now down only 3 percent in the six weeks since.


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