Boeing in the red in the first quarter, but confirms its annual forecasts

Boeing remained in the red in the first quarter and posted a bigger-than-expected net loss, but the aircraft manufacturer confirmed its full-year guidance. The net loss reached 425 million dollars, according to a press release published on Wednesday, and 1.27 dollars per share excluding exceptional items, a crucial indicator for analysts, who had expected, on average, only 1.07 dollars.

This is the sixth quarter in a row in the red for the group of Arlington (Virginia), which nevertheless significantly reduced its losses compared to the previous quarter (-35%) and over one year (-66%). At the same time, Boeing saw its turnover increase by 28% over one year, to 17.9 billion dollars, above the 17.5 billion expected by the market. Activity was driven by the acceleration of commercial aircraft deliveries, with 130 planes delivered to customers from January to March, compared to 95 in the same period of 2022.

The order book reaches more than 4,500 devices, for a list price of 334 billion dollars. Boeing still aims to deliver between 400 and 450 737 planes throughout the year, and plans to increase its production of 787s from three to five per month by the end of 2023.

Due to the ramp-up of deliveries, revenue for the commercial aviation division jumped 59.8% year-on-year. The manufacturer once again suffered from disruptions in its supply chain, which led to additional costs and affected its margins, largely explaining the loss observed. “We are making progress on the supply chain,” said CEO Dave Calhoun, quoted in the press release, adding that “demand [was] sustained in [the] key markets” of the group.

The company confirmed its free cash flow forecast of between 3 and 5 billion for the full year. In electronic trading prior to the opening of the New York Stock Exchange, the Boeing title gained nearly 4%.