Boeing on Wednesday reported a loss for the firstquarter that narrowed from last year, reflecting year-over-year KC-46A Tanker improvement, higher 737 deliveries, and lower commercial airplanes period costs, partially offset by lower tax benefits and higher interest expense.
Quarterly revenues declined 10 percent from the previous year. The company cautioned that the COVID-19 pandemic continues to challenge the global aircraft market.
"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," said Boeing President and Chief Executive Officer Dave Calhoun.
The Chicago-based company reported that its first quarter net loss attributable to shareholders narrowed to $537 million or $0.92 per share from $628 million or $1.11 per share in the prior year.
Core loss per share was $1.53 compared to core loss per share of $1.70 last year. Analysts polled by Thomson Reuters expected the company to report a loss of $1.16 per share. Analysts' estimates typically exclude special items.
Total revenues for the first-quarter declined 10 percent to $15.22 billion from the prior year's $16.91 billion, primarily driven by lower 787 deliveries and commercial services volume, partially offset by higher 737 deliveries and higher KC-46A Tanker revenue. Analysts expected revenues of $15.02 billion for the first-quarter.
Total company backlog at quarter-end was $364 billion.
Commercial Airplanes first-quarter revenue decreased 31 percent year-over-year to $4.27 billion, hurt by lower 787 deliveries, partially offset by higher 737 deliveries.
Boeing said it is continuing to make progress on the safe return to service of the 737 MAX worldwide.
The 737 program is currently producing at a low rate and continues to expect to gradually increase production to 31 per month in early 2022 with further gradual increases to correspond with market demand.
Commercial Airplanes continues to work closely with global regulators on all aspects of 777X development, including its rigorous test program, and the company still expects to deliver the first 777X in late 2023, Boeing said.
Defense, Space & Security first-quarter revenue increased to $7.19 billion from $6.04 billion in the previous year.
Global Services first-quarter revenue decreased 19 percent year-over-year to $3.7 billion and first-quarter operating margin decreased to 11.8 percent primarily driven by lower commercial services volume due to COVID-19. ■