Boeing Commercial Airplanes’ first quarter revenue down 9%

Boeing Commercial Airplanes first-quarter revenue was US$11.8 billion, down 9%, reflecting lower 737 deliveries partially offset by favorable mix. First-quarter operating margin was 9.9% reflecting lower 737 deliveries partially offset by a higher margin on the 787 program. The reported margin also reflects increased costs associated with the recent 737 production rate adjustment.

During the quarter, Commercial Airplanes delivered 149 airplanes compared to 184 the previous year. Boeing increased the production rate for the 787 to 14 airplanes per month. Commercial Airplanes captured several widebody orders during the quarter, including orders for 18 777X airplanes for British Airways parent company IAG, 20 787 airplanes for Lufthansa, and 10 787 airplanes for Bamboo Airways. The first 777X flight test airplane rolled out of the factory, and the program remains on track for flight testing this year and first delivery in 2020.

Commercial Airplanes backlog remains healthy with over 5,600 airplanes valued at US$399 billion.

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