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Boeing profit up 38% on higher deliveries

Boeing’s profit rose 19 per cent per share after adjusting for a charge of 29 cents a share a year ago related to changes in the company’s retirement plan.

Seattle - Boeing Co’s net profit soared 38 per cent in the first quarter, helped by rising production of commercial aircraft, the company said on Wednesday.

Net income rose to $1.34 billion, or $1.87 per share, from $965 million, or $1.28 per share, a year earlier.

Boeing’s profit rose 19 per cent per share after adjusting for a charge of 29 cents a share a year ago related to changes in the company’s retirement plan.

Core earnings, which exclude pension and other costs, rose to $1.97 per share from $1.76.

Revenue jumped 8 per cent to $22.15 billion, helped by a 14 per cent increase in commercial aircraft deliveries, to 184 aircraft.

Free cash flow, a closely watched figure, swung to a negative $486 million in the quarter from a positive $615 million a year ago due to significant spending on factories and tooling for new aircraft models being introduced in the next few years.

Boeing reaffirmed its outlook of producing more than $9 billion in operating cash flow this year. The company also said it spent $2.5 billion on share buybacks in the latest quarter.

Deferred production costs for the 787 Dreamliner rose by $793 million, nudging the total deferred production cost balance to $26.9 billion, Boeing said.