Boeing Co. jumped in early trading as cash flow surged and the company raised its earnings forecast, calming concerns that costs had ballooned because of production stumbles with the 737 jetliner.

• Free cash flow climbed 37 per cent to US$4.1 billion in the third quarter, Boeing said, compared with the $1.9 billion average of analyst estimates compiled by Bloomberg.

Key Insights

• The results showed the strength of Boeing’s underlying business as aircraft sales rise. Boeing reported earnings that were better than analysts had predicted, while hoisting its profit and sales forecasts for the year.
• Investors had low expectations for the third quarter after supplier strains left dozens of unfinished 737 jetliners, the company’s main source of profit, parked around a Seattle-area factory.
• Boeing took a $691 million charge for costs that are expected to exceed revenue as the company develops military contracts it recently won, for a refueling drone for the U.S. Navy and a next-generation trainer jet for Air Force pilots.

Market Reaction

• The shares rose 3.4 per cent to US$362 in early trading. Boeing advanced 19 per cent this year through Tuesday.