Boeing improved operating margin by 1.6 percentage points in the third quarter compared with last year, as commercial deliveries rose 7% with the ramp-up of the 737 Max.
Operating profit climbed 18% to $24.3 billion in the quarter, with an 11.1% operating margin, as operating revenues grew only 2%, Boeing reports in a 25 October earnings statement.
Net earnings declined 19% to $1.85 billion.
Boeing launched a third business unit – Boeing Global Services (BGS) – on 1 July, enabling the company to break out services and aftermarket financial performance for the first time.
BGS operating earnings declined 3% in the third quarter, to $506 million, but operating revenue improved $2% to $3.57 billion, Boeing says. The company expects BGS to record $14-14.5 billion in revenue with a 15-15.5% operating margin for the full year.
The financial results show that Boeing's ramp-up of the 737 Max production line is in full swing. Boeing delivered 24 Max aircraft during the third quarter, averaging eight per month. That represents 17% of the monthly average of 47 overall 737 deliveries per month.