Boeing reports first-quarter results

Boeing has reported first-quarter revenue of US$14.0 billion, driven by lower defence volume and charges on fixed-price defence development programmes, partially offset by commercial services volume. GAAP loss per share of (US$2.06) and core loss per share (non-GAAP) of (US$2.75) also reflect US$212 million of pre-tax charges for impacts of the war in Ukraine. Boeing recorded operating cash flow of (US$3.2) billion.

Commercial Airplanes first-quarter revenue of US$4.2 billion decreased slightly, primarily due to timing of wide-body deliveries, partially offset by higher 737 deliveries. Operating margin of (20.6)% also reflects abnormal costs and period expenses, including charges for impacts of the war in Ukraine and higher research and development expense.

Boeing has nearly completed the global safe return to service of the 737 MAX and the fleet has flown more than one million total flight hours since late 2020. The 737 production rate continues to increase and is expected to increase to 31 airplanes per month during the second quarter.

On the 787, the company has submitted the certification plan to the FAA. Rework has been completed on the initial airplanes and the company continues to work closely with the FAA on timing of resuming deliveries. The programme is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time. The company continues to anticipate 787 abnormal costs of approximately US$2 billion, with most being incurred by the end of 2023, including US$312 million recorded in the quarter.

During the quarter, the company launched the 777-8 Freighter with an order from Qatar Airways. Delivery of the first 777-9 airplane is now expected in 2025, which reflects an updated assessment of the time required to meet certification requirements. To minimise inventory and the number of airplanes requiring change incorporation, the 777-9 production rate ramp is being adjusted, including a temporary pause through 2023. This will result in approximately US$1.5 billion of abnormal costs beginning in the second quarter of this year and continuing until 777-9 production resumes. The 777 programme is also leveraging the adjustment to the 777-9 production rate ramp to add 777 Freighter capacity starting in late 2023.

Commercial Airplanes delivered 95 airplanes during the quarter and backlog included nearly 4,200 airplanes valued at US$291 billion. (£1.00 = US$1.25 at time of publication).

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