Boeing reports net loss, revenue decrease in first quarter

The Boeing Company on Wednesday reported first-quarter revenue of US$16.57 billion, an 8 percent decrease from the same period of 2023.

The company recorded a quarterly net loss of US$355 million with the Generally Accepted Accounting Principles (GAAP) loss per share of US$0.56 and core loss per share (non-GAAP) of US$1.13.

It also recorded an operating cash flow of negative US$3.36 billion. Results primarily reflect lower commercial delivery volume. Cash and investments in marketable securities decreased to US$7.5 billion, compared to US$16.0 billion at the beginning of the quarter reflecting debt repayment and free cash flow usage in the quarter.

The company's debt was US$47.9 billion, down from US$52.3 billion at the beginning of the quarter due to the paydown of debt maturities. It has access to credit facilities of US$10.0 billion, which remain undrawn. The total company backlog at quarter-end was US$529 billion.

Its Commercial Airplanes first-quarter revenue decreased to US$4.65 billion from US$6.70 billion a year ago, primarily reflecting lower 737 deliveries and 737-9 grounding customer considerations.

During the quarter, the 737 program slowed production below 38 per month to incorporate improvements to its quality management system and reduce traveled work within its factory and supply chain. In addition, Commercial Airplanes is implementing a comprehensive action plan to address feedback from the FAA audit of 737 production, the company said.

Commercial Airplanes booked 125 net orders and delivered 83 airplanes during the quarter and backlog included over 5,600 airplanes valued at US$448 billion.

Defense, Space & Security first-quarter revenue increased to US$6.95 billion from US$6.54 billion one year ago.

Global Services first-quarter revenue increased to US$5.05 billion from US$4.72 billion year on year and its operating margin of 18.2 percent reflects higher commercial volume and favorable mix.

"Our first quarter results reflect the immediate actions we've taken to slow down 737 production to drive improvements in quality," said Dave Calhoun, Boeing president and CEO.

"We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future," he added.