Boeing Q12022 revenue down 8% to $14bn
Commercial airplane deliveries increased 23% to 95 from 77 in Q12021 but revenue declined marginally (3%) to $4.2bn
New York Stock Exchange-listed The Boeing Company reported an 8 percent decline in Q12022 revenue to $14 billion due to lower defence volume and charges on fixed-price defence development programmes, which was partially offset by commercial services volume.
"GAAP loss per share of ($2.06) and core loss per share (non-GAAP)* of ($2.75) also reflect $212 million of pre-tax charges for impacts of the war in Ukraine. Boeing recorded operating cash flow of ($3.2) billion," an official statement said.
"While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we're making toward our key commitments," says Dave Calhoun, President and chief executive officer, Boeing. "We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the FAA. Despite the pressures on our defence and commercial development programmes, we remain on track to generate positive cash flow for 2022, and we're focused on our performance as we work through certification requirements and mature several key programmes to production. Leading with safety and quality, we're taking the right actions to drive stability throughout our operations, deliver on our commitments to customers and position Boeing for a sustainable future."
Commercial airplane deliveries increased 23 percent to 95 from 77 in Q12021 but revenue declined marginally (3 percent) to $4.2 billion "primarily due to timing of wide-body deliveries, partially offset by higher 737 deliveries. Operating margin of (21 percent) also reflects abnormal costs and period expenses, including charges for impacts of the war in Ukraine and higher research and development expenses."
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, the statement said.
"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 $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."
