US aircraft manufacturer Boeing announced its first quarter financial results on the 24th, showing the first decline in revenue in seven quarters. Photographed in August 2019 (2024 Reuters/Brendan McDermid)
Sales were $16.57 billion, down from $17.92 billion in the same period last year. However, it exceeded market expectations of $16.23 billion. In January, production plummeted following an accident in which the sidewall of a 737 MAX 9 operated by Alaska Airlines was blown off. Analysts had revised their forecasts downward based on this.
Adjusted loss per share was $1.13. However, the deficit narrowed and did not increase as much as the market expected by $1.76.
Cash burn was $3.93 billion, slightly lower than the market estimate of $4.49 billion.
Following the accident in January, production of the 737 MAX plummeted. In the first quarter, 67 737 aircraft were delivered, down 41% from the previous year.
Boeing CEO Dave Calhoun will step down at the end of the year as confidence in the safety of Boeing’s planes wanes. Boeing has not yet named its next CEO, but Calhoun told CNBC that he believes Stephanie Pope, the company’s head of commercial aviation, has the skills to lead the company.
Following the results, Boeing’s stock price rose approximately 4% at one point. However, after that it started to decline. The price has fallen about 35% since the beginning of the year.
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