The world's largest aerospace manufacturer lifted its forecast for jet production and forecast record cash flow. Fred Katayama reports.
More work for Boeing workers. The world's largest aerospace manufacturer forecast it'll deliver more planes this year. Strong orders for its small body 737 and 737 MAX planes will make up for the planned production cut of its widebody 777s. It also forecast record cash flow. In its latest quarter, Boeing's profit soared 58 percent. Revenue inched lower, but that decline was less than expected. While commercial aircraft sold well, revenue fell sharply for military aircraft. And Boeing said it would take a further charge on its KC-46 Pegasus aerial tanker, a program that is already behind schedule and over budget due partly to design issues. Buckingham Research Group analyst Richard Safran said, "The central focus for investors will be on the 2017 operating cash flow guide - $10.75 billion. We expect Boeing shares to trade higher today, largely due to Boeing's 2017 cash flow guide coming in $550 million above consensus expectations." Boeing shares, up 3 percent this year, added on to those gains at the start of trading.