Boeing Co on Wednesday posted second-quarter profit and cash growth that beat analysts` estimates even though sales were less than expected, sending shares up sharply.

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The profitability of its 787 Dreamliner contributed to strong cash flow as the world`s biggest plane maker focuses on streamlining production of new 737 MAX models and finishing development of other forthcoming planes. The company also benefited from cost-cutting.

Boeing said it will cut full-year capital expenditure by $300 million and was making $3.5 billion in additional pension contributions to reduce future costs.

The capital spending plan was not a surprise since Boeing already has made most of the big investments in its new 777X wing factory and on the 737 MAX and 787-10 programs, said analyst Richard Aboulafia at Teal Group.

"Capex was bound to decline," he said.

Boeing added $1.5 billion to its operating cash flow forecast for the year, raising it to about $12.25 billion. It is increasing its planned share repurchases this year by $3.5 billion, bringing the total to about $10 billion.

The company lifted its full-year forecast for core earnings, which exclude some pension costs, by 75 cents to between $11.10 and $11.30 a share, its second upward revision this year.

Boeing shares were up 3.5 percent at $220.00 in premarket trading. The stock has rocketed up 37 percent this year.

Boeing swung to a profit of $1.76 billion, or $2.89 per share, in the second quarter, from a loss of $234 million, or 37 cents per share, a year earlier.

Last year`s results included more than $2 billion in charges related to the 787, 747 and KC-46 tanker aircraft programs.

Core earnings, which excluded some pension and other costs, were $2.55 per share in the quarter.

Revenue fell 8.1 percent to $22.74 billion.

Analysts expected core earnings of $2.30 per share on revenue of $23 billion, according to Thomson Reuters I/B/E/S.

Commercial aircraft deliveries fell to 183 from 199 a year ago. Boeing said it still expects to deliver 760-765 commercial aircraft in 2017.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)