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Boeing’s earnings take off again

Orders For U.S. Manufactured Goods Decline By Largest Margin InOrders For U.S. Manufactured Goods Decline By Largest Margin In
The Boeing logo hangs on the corporate world headquarters building of Boeing.Photograph by Scott Olson — Getty Images

Boeing, North America’s biggest jet manufacturer, continued its upward earnings trend today, beating analyst predictions on earnings per share, and just continuing its overall dominance of the aerospace market. Core (non-GAAP) earnings rose to $2.14 per share, a jump of 19% year-over-year and a handy beat of analysts’ expectations. The company also raised its full-year profit forecast. Here are a few of the big points from the third quarter earnings release.

What you need to know: By just about all measures, the company is doing very well. Not only are earnings up, but revenues are as well, driven largely by an increase in deliveries. Boeing (BA) delivered 186 planes in the third quarter, up from 170 the year before. For the year-to-date, it has delivered 528, up from 476 in 2013 — though it is operating at slightly smaller margins. Boeing is also bringing in more revenue from its space and defense businesses.

The big number: In overall revenue, Boeing is shining. For the first nine months of the year the company brought in $66.3 billion, up 5% from $62.9 billion in the same period last year. The higher deliveries mentioned above are probably the main reason for the increases — when your major business is selling airplanes, selling more of them is going to mean more money. Looking back at deals, it’s easy to see how this business is such a boon. In September, Boeing brought in around $11 billion in a sale with Ryanair, a relatively small Irish budget airline.

What you may have missed: Cash flow is actually down at Boeing, partially due to a big share-buyback program. Free cashflow stood at $317 million for the quarter, down from $2.3 billion in the third quarter of 2013.