In its latest results, Boeing reported a net loss of $561 million for the first three months of 2021 on revenue of $15.2 billion, 10% lower than the prior-year period. On an adjusted per-share basis, Boeing lost $1.53, a narrower loss than the adjusted $1.70 per share loss it reported a year ago. Boeing’s total backlog has grown to $365bn -
Boeing Commercial Airplanes first-quarter revenue decreased to $4.3 billion from $6.2bn in 2020 – a 54% decline, which was driven by lower 787 deliveries, partially offset by higher 737 deliveries. BCA booked a loss of $856million for the quarter, which is an improvement on the $2.1bn booked a year ago.
"I am proud of the progress our global team made across our business in the first quarter as we continued to transform our enterprise, strengthen our safety processes, and sustain critical investments for our future," said Boeing President and Chief Executive Officer Dave Calhoun. "While the global pandemic continues to challenge the overall market environment, we view 2021 as a key inflection point for our industry as vaccine distribution accelerates and we work together across government and industry to help enable a robust recovery. Our balanced commercial, defense, space and services portfolio continues to provide critical stability for our business – and we remain focused on safety, quality and integrity as we deliver on our customer commitments."
Cash and investments in marketable securities decreased to $21.9 billion, compared to $25.6 billion at the beginning of the quarter, primarily driven by operating cash outflows. The company refinanced $9.8 billion of debt in the quarter. Additionally, the company increased its revolving credit facilities by $5.3 billion to a total of $14.8 billion, which remain undrawn.
Boeing stated that the company continues to make progress on the safe return to service of the 737 MAX and that it is working closely with the FAA and customers to address electrical issues identified in certain locations in the flight deck of select 737 MAX airplanes.
Since the FAA's approval to return the 737 MAX to operations in November 2020, Boeing has delivered more than 85 737 MAX aircraft and 21 airlines have returned their fleets to service, safely flying more than 26,000 revenue flights totalling over 58,500 flight hours (as of April 26, 2021).
Boeing states that the 737 program is currently producing at a low rate and continues to expect to gradually increase production to 31 per month in early 2022 with further gradual increases to correspond with market demand.
The company also resumed 787 deliveries in late March, and has transitioned to the previously announced production rate of 5 aircraft per month.
BCA says that it continues to work closely with global regulators on all aspects of 777X development, including its rigorous test program, and the company still expects to deliver the first 777X in late 2023. As previously announced, the combined 777/777X production rate is transitioning to 2 aircraft per month.
Commercial Airplanes secured orders for 100 737 aircraft from Southwest Airlines, 25 737 aircraft from United Airlines, 23 737 aircraft from Alaska Airlines, and four 747 freighter aircraft from Atlas Air. Commercial Airplanes delivered 77 airplanes during the quarter and backlog included over 4,000 airplanes valued at $283 billion.
Global Services first-quarter revenue decreased to $3.7 billion and first-quarter operating margin decreased to 11.8 percent primarily driven by lower commercial services volume due to COVID-19.
At quarter-end, Boeing Capital's net portfolio balance was $1.9 billion.