Boeing posts lower-than-expected Q1 numbers as 737 deliveries decline
Boeing Co.
$169.18
11:10 23/04/24
The world's largest jetmaker reported a sharp decline in quarterly earnings as commercial airline deliveries slowed and suspended its guidance for 2019 on the back of the recent tragedies involving its best-selling 737 MAX.
Dow Jones I.A.
38,503.69
04:30 15/10/20
Boeing posted a 2% drop in sales for the 12 months ending on 31 December to reach $22.92bn, with operating earnings down by 18% to $2.35bn and by 21% at the 'core' level to $1.986bn.
Earnings per share on a core or non-GAAP basis meanwhile declined 13% to $3.16.
Commercial airplane deliveries fell from 184 in the year ago quarter to 140 over the latest three-month stretch, reflecting fewer 737 deliveries, with sales at the unit dropping 9% to $11.82bn and operating margins decreasing by one percentage point to 9.9%.
Operating earnings at the division dropped 17% to $1.17bn.
At the Defense, Space and Security arm on the other hand, the company's topline improved by 2% to $6.61bn, on the back of increased volume across satellites, weapons and surveillance aircraft, and earnings from operations improved 12% to $847m.
However, C-17 volumes declined.
Revenues at the firm's Global Services arm meanwhile grew 17% to $4.62bn, boosted by the acquisition of KLX, but the impact was offset by a 2.3 percentage point drop in the company's operating margins to 14.1%.
Overall, free cash flow shrank by 16.6% versus the year earlier figure to $2.29bn.
On the outlook, Boeing said it did not reflect the impact that the two recent fatal disasters involving its 737 MAX jets might have.
"Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date," the manufacturer said in a statement.
Management did however say that it was making "steady progress" on certifying the flight software update for the 737 MAX, with 135 flights involving the new software having been completed.
A period-end, the order backlog stood at $487bn and included over 5,600 jets.
As of 1453 BST, shares of Boeing were adding 0.79% to 376.99.