• Boeing’s revenue fell to $13.99 billion from $15.22 billion
Shares of Boeing Co (NYSE: BA) fell 12% to $147 during early trading hours after the company reported a quarterly loss and lower revenue than estimated. This was due to rising costs on both commercial and defense aircraft and charges related to the war in Ukraine.
The company also said that it would pause the production of the 777X through 2023 due to a fresh delay in its entry into service after certification problems and weak demand, with $1.5 billion in abnormal costs that would reflect in the second quarter.
In addition to these bills, the company also disclosed more than $1.2 billion in charges due to supplier costs and technical problems on its Air Force One presidential plane, trainer jet, and the war in Ukraine.
In a note to his employees, Boeing CEO David Calhoun said, “Through our first-quarter results, you’ll see we still have more work to do, but I remain encouraged with our trajectory, and we are on track to generate positive cash flow for 2022.”
“We are a long-cycle business, and the success of our efforts will be measured over years and decades; not quarters,” he added.
Boeing’s revenue fell to $13.99 billion from $15.22 billion while the quarterly core loss per share was reported as $2.75, compared with a loss of $1.53 per share a year ago.
The company delivered 95 planes in the first quarter, up from 77 in the same period last year. However, revenue in its commercial aircraft unit fell 3% from last year to $4.16 billion as 787 Dreamliner deliveries remained halted.
The company said it’s ramping up 737 Max output to 31 a month in the second quarter.
Boeing reported negative operating cash flow for the quarter but still expects to be cash-flow positive in 2022.
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Source: Boeing