EARNINGS : Boeing Profit Soars 87% in First Quarter

Boeing Co., which is selling more planes and making more on them, said Monday that its sales jumped 60% and its profit 87% in the first quarter of 1990.

Company officials said demand should remain high for Boeing’s jetliners and hinted strongly that they would go ahead with their planned new jet, the 777. But they warned shareholders at their annual meeting to expect another losing year for Boeing’s troubled defense and space segments.

Boeing announced a 3-for-2 stock split, the second year in a row it has done so.

Shareholders gave directors permission to issue more stock but rejected a request that Boeing stop doing business with South Africa, despite efforts by a Baptist minister who camped in a plywood shack in front of company headquarters for three days and urged holders to “do the right thing.” They also turned down three “shareholders’ rights” resolutions, including a call for a shareholder vote on the company’s “poison pill” plan.

Boeing earned $302 million on sales of $6.4 billion for the first three months of 1990, compared to profit of $161 million on sales of $4 billion ago.

The 1989 figures are before a restatement to reflect a change in accounting for income taxes. Without restatement, the earnings would be $459 million.

Boeing was left with a number of nearly complete planes when production was virtually stopped by a 48-day machinists union strike last fall. As a result, it was able to deliver 84 jets in the first quarter, compared to 67 in the first quarter of 1989.

Frank Shrontz, chairman and chief executive, said the higher profits resulted from increased sales and improved operating margins on commercial jets. Higher federal taxes and losses in other segments of the company partially offset that performance, he said.

Last year, Boeing’s military and space divisions lost $474 million. Boeing has bid aggressively on defense and space contracts in recent years and fallen behind on several programs. At the beginning of the year, it consolidated its military work into Boeing Defense and Space Group to try to make the segments more efficient.