Strong jet demand has pushed Boeing to raise its profit forecast for the third time, but analysts were disappointed by its small cash flow. Fred Katayama reports.
Flying colors for Boeing's bottom line. Strong demand for its passenger jets lifted its quarterly profit 18 percent. And the aerospace giant is ramping up its profit outlook for the third time this year as it ramps up plane production. Boeing's backlog for commercial jets grew $50 billion over the quarter. Fueling revenue: its narrow body 737 MAX 200 and wide body 787 Dreamliners. Ryanair committed to buying 100 of those 737s during the quarter. Boeing says demand for the 737 is so strong it'll boost its production rate in 2017 and again the following year. And in an era of tighter defense spending, Boeing managed to boost its profit margin in that segment. But its revenue for space and services fell. Boeing's profit far surpassed Wall Street's estimates. But analysts were disappointed by its small cash flow . RBC analyst Robert Stallard said, "Given that Boeing has been encouraging investors to look at cash versus EPS for the most significant growth over the next few years, the lack of cash in the third quarter and only a modest change to the operating cash guidance for the year are likely to disappoint." Boeing's stock, which is far outperforming that of rival Airbus this year, fell in early trading.