Boeing Boosts Profit On Lower Revenue

April 26, 2017

Boeing reported a first quarter net profit of USD$1.45 billion, a 19 percent increase on the previous year.

Total revenue came in at $20.98 billion, a 7 percent drop from 1Q16. In the commercial aircraft division, revenue edged down 1 percent to $14.3 billion as fewer 737s were delivered. Boeing is transitioning to 737 MAX production, with entry into service of the new aircraft expected in May.

The first quarter operating margin increased to 8.5 percent, from 7.2 percent, reflecting improved performance on production and services, the Chicago-based company said.

Boeing took $27 billion of net orders in the quarter as the value of its backlog rose to $480 billion, up from $473 billion at the start of the period.

The commercial aircraft division booked 198 net orders during the quarter, with the backlog now standing at more than 5,700 planes valued at $417 billion.

Boeing’s chief executive Dennis Muilenburg said that milestones achieved during the quarter included certification of the 737 MAX 8 and first flight of the 787-10 Dreamliner. “We remain on track to achieve our full-year revenue, earnings and cash flow targets,” he said in a company statement.

Boeing delivered 169 commercial aircraft during the quarter, a drop of seven from last year. The 737 saw the biggest fall in deliveries as Boeing ramps up production of the 737 MAX. Wide-body deliveries were broadly similar to the first quarter 2016.

Boeing maintained its 2017 delivery forecast of 760-765 commercial aircraft, and left its revenue guidance for that sector unchanged at $62.5 billion to $63.5 billion. Total revenue guidance is also unchanged at $90.5 billion to USD$92.5 billion.

(Airwise)