Chicago, IL, United States (4E) – Boeing Co. posted a 13 percent decline in earnings in the first quarter as costs related to retirement plan changes masked the strong demand for its jetliners.
Profit was $965mn, or $1.28 per share, compared with $1.11bn, or $1.44 per share, a year ago. Core operating earnings, which exclude certain items, climbed to $1.76 from $1.73. Revenue rose 8.3 percent to $20.47bn. Operating margin narrowed to 7.5 percent from 8.1 percent.
Analysts projected profit of $1.56 a share and revenue of $20.2bn. Wednesday’s results topped expectations and the company increased its earnings outlook.
The latest quarter included charges of around $330mn linked to Boeing’s plans to transfer majority of its workers from traditional pension plans to 401(k) retirement-savings plans beginning 2016.
Revenue at its commercial segment climbed 19 percent in the latest quarter, while operating earnings climbed 23 percent. Boeing delivered 161 jets, from last year’s 137.
The company’s defense, space and security unit posted weaker results due to defense spending cuts. Revenue fell 5.9 percent, while operating earnings slid 6.5 percent.