The Boeing Company on Wednesday reported first-quarter revenue of 14 billion U.S. dollars, an eight percent decrease from the same period of 2021, driven by lower defense volume and charges on fixed-price defense development programs, partially offset by commercial services volume.
Its Generally Accepted Accounting Principles (GAAP) loss per share of 2.06 dollars and core loss per share (non-GAAP) of 2.75 dollars also reflect 212 million dollars of pre-tax charges for impacts of the war in Ukraine, the company said.
Boeing recorded operating cash flow of negative 3.2 billion dollars. Cash and investments in marketable securities decreased to 12.3 billion dollars, compared to 16.2 billion dollars at the beginning of the quarter, primarily driven by operating cash outflows and debt repayment. The company has access to credit facilities of 14.7 billion dollars which remain undrawn.
Commercial Airplanes first-quarter revenue of 4.2 billion dollars decreased slightly, primarily due to timing of wide-body deliveries, partially offset by higher 737 deliveries.
According to Boeing, it 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 Federal Aviation Administration. “The program 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 said.
During the quarter, Boeing launched the 777-8 Freighter with an order from Qatar Airways. Delivery of the first 777-9 airplane is now expected in 2025.
Boeing’s Commercial Airplanes delivered 95 airplanes during the quarter and backlog included nearly 4,200 airplanes valued at 291 billion dollars.
Defense, Space & Security first-quarter revenue decreased to 5.5 billion dollars from 7.2 billion dollars one year ago.
Global Services first-quarter revenue increased to 4.3 billion dollars and first-quarter operating margin increased to 14.6 percent primarily driven by higher commercial volume and favorable mix.
“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,” said Dave Calhoun, Boeing president and chief executive officer.
“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 defense and commercial development programs, we remain on track to generate positive cash flow for 2022,” he added. ■