Boeing reported on Wednesday that it had lost $ 561 million in the first quarter with $ 15.2 billion in revenue and burned $ 41 million a day in cash, largely in line with market expectations.
During the first three months of the year, the demand for commercial aircraft was suppressed by the COVID-19 epidemic. Due to production problems, Boeing managed to deliver only two 787 Dreamliners at the end of the quarter, one of the planes that some airlines still want to take.
However, Boeing CEO Dave Calhoun told employees Wednesday morning that the company had taken “significant steps” to transform the business to adapt to the downturn.
He said the 787-day pause of almost five months “was the right thing to do, it was another demonstration of our relentless focus on quality.”
And he offered optimism for the upcoming course. “We see 2021 as a major downturn in our industry as vaccine distribution accelerates,” he said.
The quarterly results were improved by 63 deliveries of 737 MAX և revenue from the Ministry of Defense, ordering և 27 KC-46 air-filled refill tanks.
The discovery of an electrical problem with the 737 MAX this month prompted the planes to slow down, but the new release did not affect the financial results for the first quarter. And Kalhun said Boeing was “finalizing plans and paperwork with the FAA” for a relatively quick fix that would allow airlines to return their aircraft to service.
“Once approved by the FAA, we expect the work to take a few days for one aircraft,” he said.
The main shock of the first quarter was the lack of 787 deliveries by the end of March. This was due to the fact that the product quality problem was detected by the connections of the body pad sections.
Boeing’s quarterly revenue fell to $ 16.9 billion a year earlier.
A quarterly loss of 92 cents per share, compared to a loss in the first quarter of 2020, was $ 1.11 per share. Last year, jet production was halted in March after Boeing shut down its plants in response to an outbreak.
Boeing reported free cash flow, which is defined as cash, capital expenditures on property, plant and equipment excluding operations, a negative $ 3.4 billion for the quarter.
Boeing cash fell $ 3.7 billion to $ 21.9 billion at the end of the quarter.
Rob Stallard, a financial analyst at Vertical Research Partners, said in a letter to investors that although these first-quarter results were “obviously not good on an absolute, relative basis, investors should have high expectations.”