- Boeing Co (NYSE:BA) first-quarter revenue declined 8% year-over-year to $13.99 billion, missing the consensus of $15.83 billion. Adjusted EPS loss widened to $(2.75) from $(1.53) in 1Q21.
- The adjusted operating margin declined to (10.4)% compared to (2.4)% a year ago. GAAP operating margin was (8.4)% versus (0.5)% last year.
- Revenue by segments: Commercial Airplanes $4.16 billion (-3% Y/Y), Defense, Space & Security $5.48 billion (-24% Y/Y), and Global Services $4.31 billion (+15% Y/Y).
- Boeing's operating cash outflow was $3.22 billion for the quarter, due to unfavorable receipt timing, compared to $3.39 billion in 1Q21.
- BA continues to expect positive cash flow for FY22.
- The company delivered 95 commercial airplanes in the quarter, and the backlog included nearly 4,200 airplanes valued at $291 billion.
- Boeing's backlog was $371 billion. Backlog at Defense, Space & Security was $60 billion, of which 33% percent represents orders from customers outside the U.S.
- Boeing stated that the 737 production rate continues to increase and is expected to increase to 31 airplanes per month during the second quarter.
- During the quarter, the company launched the 777-8 Freighter with an order from Qatar Airways.
- Boeing stated that, to minimize inventory and the number of airplanes requiring change incorporation, the 777-9 production rate ramp is being adjusted, including a temporary pause through 2023. This will result in ~$1.5 billion of abnormal costs beginning in the second quarter of this year and continuing until 777-9 production resumes.
- Boeing's cash and investments in marketable securities decreased to $12.3 billion, compared to $16.2 billion at the beginning of the quarter, primarily driven by operating cash outflows and debt repayment.
- Price Action: BA shares traded lower by 3.61% at $160.01 during the premarket session on Wednesday.
- Photo via Wikimedia Commons
