Boeing Reports First Quarter Net Loss of $561 Million on 10 Percent Decline in Revenue to $15.2 Bill
Boeing has reported a first quarter 2021 net loss of $561 million or ($0.92) per share on a year-over-year revenue decline of 10 percent to $15.2 billion. During the first quarter Boeing Commercial Airplanes booked 76 net orders and the company’s backlog grew to $364 Billion.
On Wednesday (April 28, 2021), Boeing reported their first quarter 2021 financial results. The company reported a first quarter net loss of $561 million or ($0.92) per share on a 10 percent year-over-year decline in revenue to $15.2 billion. The revenue decline is largely attributable to lower 787 deliveries and commercial services volume, partially offset by higher 737 deliveries and KC-46A Tanker revenue. During the quarter, progress on the safe return to service of the 737 MAX continued and 787 deliveries resumed in late March. Boeing closed the first quarter with cash and marketable securities of $21.9 billion and an order backlog totaling $364 billion. Boeing Commercial Airplanes added 76 net orders during the period.
In Wednesday’s announcement, Boeing’s President and Chief Executive Officer, Dave Calhoun, said,
“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. 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.”
At March 31, 2021, Boeing’s cash and marketable securities decreased to $21.9 billion, compared to $25.6 billion at the start of the quarter, primarily driven by cash outflows. During the quarter the company refinanced $9.8 billion in debts and increased their revolving credit facilities by $5.8 billion to $14.8 billion, which remain undrawn. As previously mentioned, the company’s order backlog increased to $364 billion during the first quarter. Commercial Airplanes first quarter revenue decreased to $4.3 billion, driven by lower 787 deliveries, partially offset by higher 737 deliveries.
In late March, Boeing resumed 787 Dreamliner deliveries after comprehensive reviews to ensure each aircraft meets the highest quality standards. Boeing consolidated 787 final assembly in South Carolina during the quarter and transitioned to a production rate of five per month. Boeing Commercial Airplanes continues to collaborate with global regulators on all aspects of 777X development, including its rigorous testing program. The company expects to deliver the first 777X in 2023 and as previously announced, the combined 777/777X production rate is transitioning to two aircraft per month.
During Q1, Boeing Commercial Airplanes secured orders for 100 737s from Southwest Airlines, 25 737s from United Airlines, 23 737s from Alaska Airlines and four 747 Freighters from Atlas Air Worldwide. The company delivered 77 commercial aircraft during the period and closed the quarter with a backlog of over 4,000 airplanes valued at $283 billion.
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 will continue investing in their people for future growth. In trading Wednesday morning, shares in the Boeing Company (NYSE:BA) were 3.74% lower at $233.41 per share (9:57 AM EDT).