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Boeing reports First Quarter results: Revenue of $16.6 billion

B737

Financial results reflect lower 737 deliveries and 737-9 grounding customer considerations.

The Boeing Company recorded first quarter revenue of $16.6 billion, GAAP loss per share of ($0.56) and core loss per share (non-GAAP)* of ($1.13) (Table 1). Boeing reported operating cash flow of ($3.4) billion and free cash flow of ($3.9) billion (non-GAAP)*. Results primarily reflect lower commercial delivery volume.

“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” said Dave Calhoun, Boeing president and CEO. “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.”

First Quarter 2024
  • Undertaking comprehensive actions in our commercial business to strengthen quality and safety
  • Financial results reflect lower 737 deliveries and 737-9 grounding customer considerations
  • Revenue of $16.6 billion, GAAP loss per share of ($0.56) and core (non-GAAP)* loss per share of ($1.13)
  • Operating cash flow of ($3.4) billion and free cash flow of ($3.9) billion (non-GAAP)*
  • Total company backlog grew to $529 billion, including over 5,600 commercial airplanes

Table 1. Summary Financial Results

First Quarter

(Dollars in Millions, except per share data)

2024

2023

Change

Revenues

$16,569

$17,921

(8) %

GAAP

Loss from operations

($86)

($149)

NM

Operating margins

(0.5)

%

(0.8)

%

NM

Net loss

($355)

($425)

NM

Loss per share

($0.56)

($0.69)

NM

Operating cash flow

($3,362)

($318)

NM

Non-GAAP*

Core operating loss

($388)

($440)

NM

Core operating margins

(2.3)

%

(2.5)

%

NM

Core loss per share

($1.13)

($1.27)

NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” 

Operating cash flow was ($3.4) billion in the quarter reflecting lower commercial deliveries, as well as unfavorable timing of receipts and expenditures (Table 2).

Table 2. Cash Flow

First Quarter

(Millions)

2024

2023

Operating cash flow

($3,362)

($318)

Less additions to property, plant & equipment

($567)

($468)

Free cash flow*

($3,929)

($786)

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” 

 

Table 3. Cash, Marketable Securities and Debt Balances

Quarter End

(Billions)

Q1 24

Q4 23

Cash

$6.9

$12.7

Marketable securities1

$0.6

$3.3

Total

$7.5

$16.0

Consolidated debt

$47.9

$52.3

Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities totaled $7.5 billion, compared to $16.0 billion at the beginning of the quarter reflecting debt repayment and free cash flow usage in the quarter (Table 3). Debt was $47.9 billion, down from $52.3 billion at the beginning of the quarter due to the pay down of maturing debt. The company has access to credit facilities of $10.0 billion, which remain undrawn.

Total company backlog at quarter end was $529 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

First Quarter

(Dollars in Millions)

2024

2023

Change

Deliveries

83

130

(36) %

Revenues

$4,653

$6,704

(31) %

Loss from operations

($1,143)

($615)

NM

Operating margins

(24.6)

%

(9.2)

%

NM

Commercial Airplanes first quarter revenue of $4.7 billion and operating margin of (24.6) percent primarily reflect lower 737 deliveries and 737-9 grounding customer considerations (Table 4).

During the quarter, the 737 program slowed production below 38 per month to incorporate improvements to its quality management system and reduce traveled 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. Commercial Airplanes delivered 83 airplanes during the quarter and backlog included over 5,600 airplanes valued at $448 billion.

Global Services

Table 6. Global Services

First Quarter

(Dollars in Millions)

2024

2023

Change

Revenues

$5,045

$4,720

7 %

Earnings from operations

$916

$847

8 %

Operating margins

18.2

%

17.9

%

0.3 pts

Global Services first quarter revenue of $5.0 billion and operating margin of 18.2 percent reflect higher commercial volume and favorable mix.

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.

Boeing CEO Message to Employees: Taking Action to Strengthen Safety and Quality

Boeing President and CEO Dave Calhoun shared the following message with all employees today, as the company reported first-quarter results:

Team,

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.

This started with taking responsibility and immediately and transparently supporting the National Transportation Safety Board in their investigation and the Federal Aviation Administration on their audit and oversight actions. We supported our customers in safely returning their airplanes to service, and concurrently launched significant steps to strengthen quality and safety.

Importantly, the foundation of our work is listening to our people. Since Jan. 5, more than 70,000 of you have participated in Quality Stand Downs across more than a dozen Boeing sites. From those, we’ve received more than 30,000 ideas on how we can improve. And this year, we’ve seen more than a 500% increase in employee Speak Up submissions compared to 2023. We are taking all ideas collected and prioritizing them as we further enhance our factory disciplines and overall quality standards. Our people know better than anyone the actions we must take to improve, and we are listening and acting on their feedback.

We are leaving no stone unturned and are making significant progress. That includes training, tooling, factory equipment, work instructions, inspection procedures, compliance checks, travelled work controls, incentive structures, employee listening, culture improvement and much more. These are just some of the areas where we are driving enduring change, investing and taking comprehensive actions.

We are using this period, as difficult as it is, to deliberately slow the system, stabilize 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.

There is a lot of work in front of us, but we remain fully confident in our future. While this effort will slow our recovery timing, we are starting to see these proof points that we’ll begin to stabilize and improve performance moving forward.

Demand across our portfolio remains incredibly strong. By the end of this year, we will have largely delivered our 737 and 787 inventory, effectively shutting down our two shadow factories. Our commercial business will be more stable. Our defense business will be progressing toward more historical levels of performance. And our services team will continue to deliver exceptional results for our customers. Most importantly, we will have embedded all of the important lessons we’ve learned this year.

So, despite the recent challenges, let’s not lose sight of the progress we have made; of what we are capable of achieving together; and the important role we play in our world. A Boeing airplane safely takes off or lands just about every second of every day. Our men and women in uniform rely on Boeing when it matters most, and they depend on our products to help them come home safely every day. Next month, we’ll be sending astronauts to the space station and returning them safely back to earth in our Starliner space capsule.

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.

Thank you,

Dave

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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