Boeing delivered 188 commercial airplanes during the third quarter, as against 199 in Q3 2015, but its shares rose 4 per cent after the planemaker said it would deliver more aircraft than expected this year and raised its profit outlook.

Boeing delivered 188 commercial airplanes during the third quarter of the year, as against 199 in Q3 2015, reflecting a decline of six per cent.
    
Revenue from the commercial airplanes segment decreased to $16.9 billion from the $17.7 billion in the third quarter of 2015. Third-quarter operating margin was 9.4 percent, reflecting delivery volume and mix, partially offset by lower period costs.

During the quarter, Boeing began production of the 500th 787 Dreamliner, completed service ready validation of the 737 MAX 8, and began production of the 737 MAX 9.

The 737 programme has captured more than 3,300 orders for the 737 MAX since launch and the company remains on track to raise the production rate to 47 per month in the third quarter of 2017, a company statement said.

During the quarter, Boeing continued to grow its services business through an agreement with Japan Airlines to provide spare parts solutions.

Commercial Airplanes booked 107 net orders during the quarter. Backlog remains strong with more than 5,600 airplanes valued at $409 billion.

Shares in Boeing rose 4 per cent after the plane maker said it would deliver between 745 and 750 commercial planes in 2016, up from an earlier estimate of 740 to 745 - but below last year's 762.

"Solid operating performance across our commercial and defence and space businesses in the third quarter again generated strong cash flow for Boeing, which continues to fuel investments in our future and enable us to deliver compelling returns to our shareholders," said chairman, president and chief executive officer Dennis Muilenburg. "We also captured key orders, reinforcing the strength of our large and diverse order backlog."

"We achieved key milestones on the 737 MAX, 787-10 and other development programs, including the first KC-46 production contracts. Our teams remain focused on completing these development efforts and delivering better capabilities and economics to customers around the world.

"We remain on track to deliver on our full-year commitments. At the same time, we are positioning Boeing for further growth through our intense focus on productivity, quality and safety across the company,” he added. – TradeArabia News Service