Boeing (BA) posted another wider-than-expected first quarter loss Wednesday thanks in part to around $1.5 billion in 'abnormal costs' linked to its 777x twin-engine jet.
The planemaker also said it submitted a certification plan to the U.S. Federal Aviation Administration that could see it resume 787 Dreamliner deliveries later this year, a move that mitigated the surprisingly wide first quarter loss.
Boeing said its adjusted core loss for the three months ending in March was pegged at $2.75 per share, down from a loss of $1.53 per share over the same period last year but well outside the Street consensus forecast of a 25 cents per share loss. Boeing took one-time charges of around $1.2 billion linked to the impact of its businesses in Russia as well as the Air Force One Presidential jet.
Group revenues, Boeing said, fell 8% from last year to $14 billion, a tally that also missed analysts' forecasts of a $16.02 billion tally. Free cash flow was estimated at -3.6 billion for the quarter, Boeing said, but the group reiterated its forecast to turn the figure positive in 2023.
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"While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we're making toward our key commitments," said CEO Dave Calhoun. "We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the FAA."
"Despite the pressures on our defense and commercial development programs, we remain on track to generate positive cash flow for 2022, and we're focused on our performance as we work through certification requirements and mature several key programs to production," he added. "Leading with safety and quality, we're taking the right actions to drive stability throughout our operations, deliver on our commitments to customers and position Boeing for a sustainable future."
Boeing shares were marked 10.75% lower in late morning trading Wednesday following the earnings release to change hands at $148.95 each, a move that would extend the stock's year-to-date decline to around 28.3%.
The FAA began looking into issues with the Dreamliner's fuselage in September of last year, just days after the planemaker grounded eight of the giant jets, which were made in South Carolina, after finding flaws that raised questions about their structural integrity and the risk of potential in-flight failures.
Production of the 737 MAX, the group's workhorse jet that was only recently approved for return to service following fatal crashes in 2018 and 2019, should rise to 31 aircraft per month this year, Boeing said.
