Boeing Q12024 revenue down 8% on delivery woes
Commercial airplanes Q1 revenue of $4.7bn, down 31% YoY, reflect lower 737 deliveries & 737-9 grounding considerations
Boeing reported an eight percent decline in revenue at $16.6 billion for the first quarter of 2024, reflecting lower 737 deliveries and 737-9 grounding customer considerations.
Net loss came in at $355 million compared to $425 million in Q12023, says an official release.
"Our first quarter results reflect the immediate actions we've taken to slow down 737 production to drive improvements in quality," says Dave Calhoun, President and CEO, Boeing. "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."
Commercial airplanes first quarter revenue declined 31 percent to $4.7 billion and operating loss almost doubled to $1.1 billion, the release added.
Deliveries declined 36 percent to 83 from 130 in Q12023. "During the quarter, the 737 programme slowed production below 38 per month to incorporate improvements to its quality management system and reduce travel 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.
"Commercial airplanes booked 125 net orders, including 85 737-10 airplanes for American Airlines and 28 777X airplanes for customers including Ethiopian Airlines. Backlog included over 5,600 airplanes valued at $448 billion."
Defence, space & security revenue increased six percent to $7 billion and earnings turned positive at $151 million compared to loss of $212 million in Q12023. "First quarter operating margin increased to 2.2 percent, primarily driven by higher volume and improved performance. Results also reflect $222 million of losses on certain fixed-price development programmes."
Global services first quarter revenue increased seven percent to $5 billion with earnings from operations increasing eight percent to $916 million.
During the quarter, global services opened a maintenance facility in Jacksonville, Florida, supporting military customers, and the U.S. Navy exercised options on a P-8 sustainment modification contract, the release added.
Taking action to strengthen safety and quality: CEO
"Although we report first quarter financial results today, our focus remains on the sweeping actions we are taking following the Alaska Airlines Flight 1282 accident," Calhoun writes in his letter to employees.
"We are using this period, as difficult as it is, to deliberately slow the system, stabilise the supply chain, fortify our factory operations and position Boeing to deliver with the predictability and quality our customers demand for the long term. As these efforts begin to take hold, we’re seeing early signs of more predictable, stable and efficient cycle times in our 737 factory, and expect this will continue to slowly improve.
"Near term, yes, we are in a tough moment. Lower deliveries can be difficult for our customers and for our financials. But safety and quality must and will come above all else. We are absolutely committed to doing everything we can to make certain our regulators, customers, employees, and the flying public are 100 percent confident in Boeing. While I have shared my plans to step down as CEO around the end of this year, I will be focused every day on seeing that commitment through.
"The work we do matters; it makes a difference. Over the last several months, I’ve had the opportunity to speak with many of our frontline team members. I continue to be impressed by the pride you take in your work; your commitment to getting things done the right way; and your willingness to raise your hands and offer ideas for how to do things better.
"You are why I’m so confident in our future. Together we will ensure that Boeing is the company the world needs, and the one that we are all proud to work for every day."
