Airplanes-helicopters. Boeing reports First-Quarter results
Still expect to deliver 400-450 B-737 aircraft this year
The Boeing Company recorded first-quarter revenue of $17.9 billion, GAAP loss per share of ($0.69), and core loss per share (non-GAAP) of ($1.27).
The industry reported operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP). Results improved on commercial volume and performance.
Operating cash flow was ($0.3) billion in the quarter reflecting higher commercial deliveries and favorable receipt timing.
Cash and investments in marketable securities totaled $14.8 billion, compared to $17.2 billion at the beginning of the quarter. Debt was $55.4 billion, down from $57.0 billion at the beginning of the quarter due to the pay down of debt maturities. The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $411 billion.
Commercial Airplanes first-quarter revenue increased to $6.7 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations. Operating margin of (9.2) percent also reflects abnormal costs and period expenses, including research and development.
On the 737 program, earlier this month the program's fuselage supplier notified Boeing that a non-standard manufacturing process was used on two fittings in the aft fuselage section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. While near-term deliveries and production will be impacted as the program performs necessary inspections and rework, the program still expects to deliver 400-450 airplanes this year. On production, the supplier master schedule remains unchanged including anticipated production rate increases, which will result in higher inventory levels. The company expects final assembly production to recover in the coming months with plans to increase to 38 per month later this year and 50 per month in the 2025/2026 timeframe.
The 787 program is producing at three per month with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, Commercial Airplanes secured net orders of 107. Also during the quarter the company secured commitments from Air India for 190 B-737 MAX, 20 B-787, and 10 B-777X airplanes and from Riyadh Air and Saudi Arabian Airlines for up to 121 B-787 airplanes. Commercial Airplanes delivered 130 aircraft during the quarter and backlog included over 4,500 airplanes valued at $334 billion.
Defense, Space & Security
Defense, Space & Security first-quarter revenue was $6.5 billion. First-quarter operating margin of (3.2) percent primarily reflects a $245 million pre-tax charge on the KC-46A Tanker program largely driven by the previously shared supplier quality issue resulting in factory disruption and rework. Results also include the continued operational impact of labor instability and supply chain disruption on other programs.
During the quarter, Defense, Space & Security captured awards from the US Army for 184 Apaches and from the US Air Force for 15 KC-46A Tankers and the initial E-7 development contract. Backlog at Defense, Space & Security was $58 billion, of which 30 percent represents orders from customers outside the US.
Global Services first-quarter revenue of $4.7 billion and operating margin of 17.9 percent reflect higher commercial volume and favorable mix.
During the quarter, Global Services committed to set up the first Boeing Converted Freighter line in India in collaboration with GMR Aero Technic, delivered AerCap's 50th B-737/800 BCF and broke ground on a new component operations facility in Jacksonville, Florida.
AVIONEWS - World Aeronautical Press Agency