🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Boeing first-quarter revenue tops expectations as CEO backs slowdown in output

Published 04/24/2024, 07:35 AM
Updated 04/24/2024, 10:33 AM
© Reuters.

Investing.com -- Boeing (NYSE:BA) has reported better-than-expected first-quarter revenue and a core loss per share of $1.13, as Chief Executive Dave Calhoun says that the embattled planemaker has been making efforts to slow production in order to "drive improvements" in quality.

Scrutiny has been intensifying on the safety of Boeing's airplanes since a dangerous mid-air blowout in January on one of its MAX 9 jets operated by Alaska Airlines.

In a statement, Calhoun, who is set to step down from the helm of the firm later this year, promised that Boeing will "take the time necessary" to strengthen its safety management systems.

"[T]his work will position us for a stronger and more stable future,” he added.

According to Reuters, Calhoun told employees that the business now finds itself in a "tough moment" in the near term, conceding that the deliberate slowdown in deliveries will be difficult for "our customers and for our financials." However, he stressed that "safety and quality must and will come above all else."

Deliveries of Boeing's commercial airplanes slumped by 36% to 83 in the three months ended on March 31, which the group said reflected a broader deceleration in production in its key 737 program. Boeing noted that it is also implementing a "comprehensive action plan" to address feedback from an audit by federal aviation regulators of its 737 production process.

"[T]he key question for Boeing right now is when can they deliver airplanes anywhere near demand," analysts at Goldman Sachs said in a note to clients. "The company took [the first quarter] and likely [the second quarter] to perform quality stand-downs, eliminate traveled work, and implement other changes to product quality. That’s what is needed and can put them in a successful position long-term."

Total revenues slipped by 8% to $16.57 billion, although this topped Bloomberg consensus estimates of $16.25 billion thanks in part to improved performance and higher volumes at Boeing's defense unit.

Shares in the company edged higher in early U.S. trading on Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.