Boeing has reported a higher-than-expected quarterly profit, despite making fewer deliveries.
The rise in profits results from reduced costs at its commercial airplane division.
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Macquarie Securities analyst Rob Stallard told Reuters that although revenues were pretty much in line with expectations, operating margins of 9.1% were much better than expected, with Boeing noting the benefit of a good operating performance.
The net profit, although higher than expected, fell to $519m from $610m in Q1 2009.
The firm, however, reduced its 2010 earnings forecast due to the impact of US healthcare legislation, which removes a tax benefit for some companies.
Operating margins for Boeing’s commercial airplane unit were 9.1%, up 4.2 percentage points from 2009.
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By GlobalDataBoeing received 100 gross orders in the quarter and 17 were cancelled, a contrast with the same quarter in 2009 when cancellations exceeded the 28 gross orders.
The firm has a strong backlog of 3,350 airplanes valued at $250bn, over seven times the unit’s projected 2010 revenue.
