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Boeing reports strong first quarter

written by WOFA | April 26, 2013

Increased 777 and 737 production helped ease the pain of 787 groundings during the first quarter. (Boeing)

Despite the grounding of the 787 fleet thwarting deliveries and suppressing further orders, Boeing has reported a robust first quarter, with a 20 per cent increase in net income and its order backlog reaching a record US$392 billion.

The manufacturer’s backlog was added to with US$20 billion worth of net orders for 209 aircraft in the first quarter alone. The revenue of US$19.8 billion, although three per cent down on the same period last year largely as a result of 787-related offsets, was achieved through higher production rates for the 737 and 777. This, despite Boeing reporting 137 commercial aircraft deliveries in the first quarter – a volume identical to the corresponding period in 2012.

A telling signal of 787-related impacts in seen in the company’s reported cashflow, which was particularly hard hit, with operating cashflow reducing from US$837 million to US$524 million.

Boeing Military Aircraft (BMA) first quarter revenue was US$4.1 billion, primarily reflecting lower revenue on the F-15 program, which was partially offset by higher C-17 and Apache deliveries. BMA delivered the first Indian Air Force C-17 to flight test and completed the second Phantom Eye flight during the first three months of the year.

Boeing chairman and president Jim McNerney said: “Our first priority in the days ahead is to fully restore our customers’ 787 fleets to service and resume production deliveries.”

Full-year guidance shows Boeing expecting to generate revenue of up to US$85 million. It projects delivery of up to 645 commercial aircraft for the full year.


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