The Boeing Company has reported an 8% decrease in revenues in its first quarter results for 2022, with its revenues coming in almost $2 billion below analyst estimates.
The company’s revenues dipped to $13.99 billion, down from $15.22 billion in 1Q 2021 and below Street estimates of $15.83 billion.
During the three-month period to end March 31, 2022, Boeing reported a core operating loss of $1.45 billion or $2.75 per share, compared to $353 million or $1.53 per share in same quarter last year.
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In a statement, the company said its loss per share also reflected $212 million of pre-tax charges for impacts of the war in Ukraine.
Boeing attributed a higher-than-normal operating margin of 20.6%, up from 20.1% in 1Q 2021, to “abnormal costs” such as the war in Ukraine, and higher research and development expenses.
The company delivered 95 commercial airplanes in the first quarter of 2022,up from 77 in 1Q 2021, however the airline reported a total backlog of $371 billion, including nearly 4,200 commercial airplanes valued at $291 billion.
It said that the production of its 737 model airplanes continues to increase and is expected to reach 31 airplanes per month during 2Q 2022.
Production of the 787 Dreamliner is at “a very low rate”, with Boeing stating that it anticipates abnormal costs for about $2 billion in relation to the program, including $312 recorded in the 1Q 2022.
Boeing CEO Dave Calhoun noted that, while this quarter had brought challenges for the business and the industry, the company continued to make progress towards key commitments.
“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 work through certification requirements and mature several key programs to production,” Calhoun said in a release.
"We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the Federal Aviation Administration (FAA)."
Following the release of Boeing’s first quarter earnings, the company's stock was down about 7.3% at the midday point on Wednesday at around US$154.82.
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