Boeing Q1 Results: Revenue declines 8%, first in 7 qtrs as deliveries decline
revenue to $16.57 billion, the first drop in seven quarters, as the U.S. planemaker slows production of its strongest-selling jets following a January mid-air blowout.
The U.S. planemaker said its first-quarter cash burn, a metric closely watched by investors, was $3.9 billion, compared with negative $786 million a year ago.
But the planemaker in March had anticipated free cash flow usage would be between $4 billion and $4.5 billion, higher than they planned in January as Boeing wrestles with a full-blown crisis that has led to a management shakeup.
Shares were flat in premarket trading after rising 3.6% earlier.
Since the Jan. 5 accident on an Alaska Airlines-operated jet, the Federal Aviation Administration has imposed a cap on production of the company's strong-selling 737 MAX jets. The FAA also has told Boeing to develop a comprehensive plan to address «systemic quality-control issues.»
CEO Dave Calhoun, who will step down around the end of the year, said in a letter to employees earlier on Wednesday that Boeing was «in a tough moment» in the near term. He reiterated however that the company was deliberately slowing the system to improve quality and safety.
«Lower deliveries can be difficult for our customers and for our financials. But safety and quality must and will come above all else,» he added.
Reuters reported earlier this month that output of its cash-cow 737 MAX had fallen sharply amid a step up in factory checks by U.S. regulators.
Analysts have warned the slow pace of deliveries risks delaying
