Boeing Co (NYSE: BA) shares are rising following the company’s first-quarter fiscal 2024 results. CEO Dave Calhoun emphasized a commitment to enhancing their quality and safety systems, aiming for a more stable future.
Boeing reported a first-quarter revenue decline of 8% year-over-year to $16.569 billion, beating the consensus of $16.227 billion. Revenue decrease reflects lower commercial deliveries and 737-9 grounding customer considerations.
Adjusted loss per share contracted to $(1.13) from $(1.27) in the same quarter of 2023, beating the consensus of $(1.76).
Boeing recorded an adjusted operating loss of $(388) million for the quarter, compared to $(440) million a year ago. Core operating margin was (2.3)%.
Also Read: Boeing Faces Potential Criminal Prosecution As Crash Victims’ Families Demand Justice: ‘Throw Out The DPA’
Commercial Airplanes revenue fell 31% YoY to $4.65 billion, and deliveries declined by 36%. During the quarter, Commercial Airplanes booked 125 net orders, and the backlog included over 5,600 airplanes valued at $448 billion.
During the quarter, the 737 program cut production to below 38 units per month to improve quality management and reduce carried-over work.
In addition, the company said Commercial Airplanes is implementing a comprehensive action plan to address feedback from the FAA audit of 737 production.
Related: Boeing Foresees Slower 787 Production Ramp-Up Due To Supplier Shortages: Report
Defense, Space & Security revenue increased 6% Y/Y to $6.95 billion. The backlog was $61 billion, of which 31% represents orders from customers outside the U.S.
Global Services revenue grew by 7% Y/Y to $5.045 billion. The operating margin expanded 30 bps to 18.2%, reflecting higher commercial volume and mix.
Operating cash outflow for the quarter totaled $(3.362) billion, compared to $(318) million YoY; Free cash outflow was $(3.9) billion.
Cash and investments in marketable securities totaled $7.5 billion at the end of the quarter. The total company backlog was $529 billion.
Debt was $47.9 billion, down from $52.3 billion at the beginning of the quarter due to the paydown of maturing debt.
In other news, Spirit Aerosystems Holdings, Inc. (NYSE:SPR) disclosed in a filing that Boeing will pay $425 million as an advance payment of amounts amid increased inventory levels and reduced cash flow following FAA restrictions.
Under the agreement, Spirit will maintain a production rate that supports Boeing’s contractual production demand.
Also Read: Boeing, Airbus Near Deal To Divide Operations Of Key Supplier Spirit AeroSystems: Report
Price Action: BA shares are trading higher by 4.01% at $175.97 premarket at the last check Wednesday.
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