Boeing reported a second-quarter net profit of $1.8 billion, reversed from a net loss of $234 million in the 2016 June quarter when the company incurred several pre-tax charges—including R&D charges related to commercial aircraft programs—that weighed down earnings.
Boeing’s 2017 second-quarter revenue dropped 8.5% year-over-year (YOY) to $22.7 billion, but the revenue dip was outweighed by a 17.5% decrease in expenses to $18.4 billion, producing an operating profit of $4.4 billion, up 83.3% over operating income of $2.4 billion in the 2016 June quarter.
The company was bullish on the second-quarter results, raising its GAAP earnings per share guidance for the full-year 2017 to between $11.10 and $11.30 from between $10.35 and $10.55 previously. Full-year revenue guidance remained unchanged at $90.5 billion-$92.5 billion and 2017 commercial aircraft delivery guidance remains at 760-765 units.
The Boeing Commercial Airplanes unit posted a second-quarter operating profit of $1.6 billion, reversed from a $973 million operating loss in the 2016 June quarter. The unit’s revenue was down 10% YOY to $15.7 billion on an 8% drop in aircraft deliveries to 183, but Commercial Airplanes’ operating margin was 10%, a 15.6 point improvement over a negative 5.6% operating margin in the 2016 June quarter. Boeing said the revenue dip could be attributed to planned production rate cuts and the timing of deliveries. The second-quarter operating margin reflects “solid execution,” Boeing stated.
Boeing’s commercial backlog at the end of the second quarter stood at 5,700 aircraft valued at $424 billion.