Boeing reported on Wednesday a first quarter loss of $1.353 billion or ($1.11) per share on a revenue of $16.9 billion. The company had a negative cash flow of ($4.3) billion during Q1 and ended the quarter with $15.5 billion in cash and marketable securities.
Today, The Boeing Company (NYSE: BA) reported a challenging first quarter with GAAP loss from operations of $1.353 billion or ($1.11) per share on a 26 percent decline in revenue to $16.9 billion. During the quarter, the company had a negative operating cash flow of ($4.3) billion and ended the quarter with $15.5 billion in cash and marketable securities. Boeing still has a healthy backlog of orders valued at $439 billion, including 5,000 commercial airplanes. First quarter financial results were substantially impacted by both the continued 737 MAX grounding and the global COVID-19 pandemic. In Wednesday’s announcement, Boeing’s President and CEO David Calhoun said,
“The COVID-19 pandemic is affecting every aspect of our business, including airline customer demand, production continuity and supply chain stability. Our primary focus is the health and safety of our people and communities while we take tough but necessary action to navigate this unprecedented health crisis and adapt for a changed marketplace. While COVID-19 is adding unprecedented pressure on our business, we remain confident in our long term future. We continue to support our defense customers in their critical national security missions. We are progressing toward the safe return to service of the 737 MAX, and we are driving safety, quality and operational excellence into all that we do every day. Air travel has always been resilient, our portfolio of products and technology is well positioned, and we are confident we will emerge from the crisis and thrive again as a leader of our industry.”
The pandemic has impacted demand for commercial airplanes and services including purchase delays, slowing delivery schedules and deferrals of elective maintenance. To meet the new reality, Boeing has reduced airplane production rates, undertaken an organizational restructuring and plans on optimizing staffing levels through a voluntary layoff program. In order to maintain healthy liquidity levels, the company has drawn on a term loan facility, reduced operating costs and discretionary spending, and has suspended share repurchases and dividends until further notice. Boeing has also reduced or deferred R&D capital expenditures and eliminated salaries for the CEO and Chairman for the year. The company is currently exploring all options to increase liquidity as a bridge to recovery and believes they will raise the capital necessary to fund operations.
In trading Wednesday morning, shares in The Boeing Company (NYSE: BA) were 5.10% higher at $137.67/share (10:09 AM EDT).
Source: Boeing