Boeing Reports First Quarter 2022 Net Loss of $1.24 Billion or $2.06 per Share
Boeing has reported a first quarter net loss of $1.24 billion or ($2.06) per share on an 8.8 percent year-over-year decline in revenue to $14.0 billion. At March 31, 2022 the company had a total backlog valued at $371 billion, including nearly 4,200 commercial airplanes.
On Wednesday (April 27, 2022), The Boeing Company reported their first quarter financial results for the period ending March 31, 2022. The company reported a first quarter GAAP net loss of $1.24 billion or ($2.06) per share on a year-over-year decline in revenue of 8.8 percent to $14.0 billion, and a non-GAAP core loss per share of ($2.75) per share. The loss also reflects $212 million in pre-tax charges attributable to impacts from the war in Ukraine. At March 31, 2022, Boeing had cash and cash equivalents totaling $7.4 billion and a total order backlog valued at $371 billion, including nearly 4,200 commercial airplanes valued at $291 billion. During the first quarter, Boeing Commercial Airplanes delivered 95 aircraft.
In Wednesday’s announcement, Boeing’s President and Chief Executive Officer, Dave Calhoun, said,
“While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we're making toward our key commitments. We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the FAA. 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 we work through certification requirements and mature several key programs to production. Leading with safety and quality, we’re taking the right actions to drive stability throughout our operations, deliver on our commitments to customers and position Boeing for a sustainable future.”
Boeing’s first quarter Commercial Airplanes revenue declined 3.0 percent to $4.2 billion, primarily attributable to widebody delivery timings, partially offset by increased 737 deliveries. The safe global return of 737 MAX Family airplanes has now been completed, with the fleet flying over one million hours since late 2020. Boeing continues to ramp up 737 production and expects an increase to 31 airplanes per month during Q2 2022.
The company has submitted the 787 certification plan to the FAA and rework on the initial impacted airplanes has been completed. The program is currently producing at a very low rate, as Boeing continues to work closely with the FAA to resume deliveries, with production expected to gradually return to five 787s per month once deliveries resume. Boeing expects abnormal costs related to the 787 program of approximately $2.0 billion, including $312 million recorded in the first quarter of 2022.
During the first quarter, Boeing launched the 777-8 Freighter with an initial order from Qatar Airways. Delivery of the first 777-9 has been postponed until 2025 due to a reassessment of time required to meet certification requirements. In order to minimize inventory and the number of airplanes requiring the incorporation of changes, 777-9 production has been temporarily paused until 2023, resulting in abnormal program costs of $1.5 billion, which will be recorded starting Q2 2022. The company plans on leveraging the adjusted 777-9 production rate to ramp up 777 Freighter capacity in late 2023.
Boeing (NYSE: BA) is the world’s largest aerospace company and leading supplier of commercial airplanes, defense, space and security systems, as well as global services. The aerospace giant tops the list of the largest U.S. exporters, providing a significant positive impact to America’s annual GDP. Boeing supports government and commercial customers in over 150 countries and employs more than 160,000 team members worldwide. As Boeing continues to deliver for customers, they are committed to their legacy of aerospace leadership in technology and innovation and living the company’s core values of safety, quality and integrity.
In trading Wednesday morning (April 26, 2022), shares in The Boeing Company (NYSE: BA) were 9.87% lower at $150.55/share (10:08 AM EDT).