By Angela Chen 

Boeing Co. said its first-quarter profit rose 38% on growth in its commercial-airlines segment, but its revenue growth didn't keep pace and costs tied to its flagship 787 Dreamliner program continued to mount.

Shares, which have risen 18% this year through Tuesday's close, edged down nearly 2% premarket.

Boeing's results have been buoyed by strong commercial-jet demand in recent quarters, despite geopolitical developments that have slowed air-traffic growth in some regions. In the first quarter, commercial airline revenue grew 21% to $15.38 billion, while deliveries rose 14% to 184, including 30 Dreamliners.

But the company blamed the increase in 787 deliveries for its segment operating margin narrowing to 10.5% from 11.8%. Boeing's combined losses for its flagship 787 program rose another $793 million in the quarter to $26.94 billion. The company continues to slim its unit costs on each delivery, which is still millions above the jet's sale price, and has said it will break even on each delivery this year and begin turning cash positive in 2016.

In all, the world's largest aerospace company by revenue is working through a $495 billion order backlog for commercial jets. That comes as some industry executives and investors have voiced concern about a potential bubble in jetliner demand.

Boeing and rival Airbus Group NV have built record order books on the promise of improved fuel efficiency. Tumbling oil prices, though, could make airlines defer investment in more fuel-efficient planes.

Overall, Boeing reported a profit of $1.34 billion, or $1.87 a share, compared with $965 million, or $1.28 a share, a year earlier. Core operating earnings, which exclude items including pension components related to market fluctuations, improved $1.97 from $1.76.

Revenue grew 8.2% to $22.15 billion.

Analysts polled by Thomson Reuters had expected $1.81 in per-share earnings and $22.49 billion in revenue.

Boeing's defense, space and security segment again posted weaker results. Revenue dropped 12% in the first quarter, with the biggest decline coming from the military aircraft divisions, while earnings from operations edged down 4.5%. The company is restructuring the defense unit to counter military budget pressures and compete for a number of coming Pentagon awards.

Boeing backed its financial and deliveries guidance for 2015 and said it bought back 17 million shares in the quarter for $2.5 billion.

Write to Angela Chen at angela.chen@dowjones.com

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