Boeing Q1 Loss Narrows, Turns To Core Profit On Volume Growth; Stock Gains

Boeing

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(RTTNews) - Shares of Boeing Co. were gaining around 6 percent in the early morning trade on the NYSE after the aerospace major reported Wednesday narrower net loss in its first quarter, and a core operating profit compared to prior year's loss, with significantly higher revenues. The company attributed the results primarily to improved operational performance and commercial delivery volume.

In a statement, Kelly Ortberg, Boeing CEO, said, "Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality. We continue to execute our plan, are seeing early positive results and remain committed to making the fundamental changes needed to fully recover the company's performance while navigating the current environment."

The company noted that its 737 program gradually increased production and maintains plans to reach 38 per month in the current year. The 787 program continued to stabilize production at 5 per month and still expects to increase to 7 in the current year.

Total company backlog grew to $545 billion, including over 5,600 commercial airplanes valued at $460 billion. Commercial Airplanes booked 221 net orders in the quarter, including 20 777-9 and 20 787-10 airplanes for Korean Air and 50 737-8 airplanes for BOC Aviation.

In the first quarter, net loss attributable to Boeing shareholders was $37 million, and net loss attributable to common shareholders was $123 million, compared to a loss of $343 million in the prior year. Loss per share was $0.16, compared to a loss of $0.56 a year ago.

Core operating profit was $199 million, compared to a loss of $388 million last year. Core loss per share was $0.49, compared to a loss of $1.13 in the prior year.

The Wall Street analysts on average had expected the company to report a loss of $1.30 per share. Analysts' estimates typically exclude special items.

First-quarter total revenues increased 18 percent to $19.50 billion from $16.57 billion in the prior year, primarily reflecting higher commercial deliveries. Analysts had estimated $19.79 billion in revenue.

Sales of products grew to $16.15 billion from last year's $13.27 billion. Sales of services increased to $3.35 billion from $3.30 billion a year ago.

In the quarter, revenues from Commercial Airplanes segment climbed 75 percent from last year to $8.15 billion. Deliveries went up 57 percent to 130 planes from 83 planes a year ago. Deliveries of 737 were 105 units, higher than 67 units a year ago.

Defense, Space & Security revenue was $6.30 billion, down 9 percent from last year.

Global Services revenue was $5.063 billion, slightly higher than $5.045 billion a year ago.

On the NYSE, Boeing shares were gaining around 5.8 percent to trade at $171.93.

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