Boeing's net income rose 20 percent in the quarter to $1.11 billion, or $1.44 per share. Excluding pension-related charges, Boeing would have earned $1.73 per share, well above analyst expectations.
The 787 troubles showed up in other places besides Boeing's bottom line. Revenue fell 3 percent to $18.89 billion in part because Boeing delivered just one 787 before the grounding.
Airlines make their final payment for the plane when it's delivered. And Boeing generated almost no cash in the quarter. Free cash flow, a measure of cash generated by a business, dropped to $3 million, from $413 million a year ago.
Boeing loses money on each 787 it builds now. Smith said it should be breaking even on each plane in about two years.
Boeing still expects to meet its financial and delivery targets this year. That includes delivering at least 60 787s. It delivered 137 planes during the quarter, because faster production of 737s and 777s offset the lack of 787 deliveries.
Operating profit rose 12 percent in its defense unit as its space business grew sharply.
Shares of Chicago-based Boeing Co. rose $2.65, or 3 percent, to $90.83 in trading Wednesday after rising as high $92.65 earlier. That was the highest level for the shares since December 2007, according to FactSet.