Boeing — Boeing just announced its first-quarter financial report, and the results produced had varied responses.
While the company’s revenue exceeded expectations, profits lagged.
Furthermore, despite production issues, Boeing announced plans to increase the output of its 737 Max planes.
Boeing is a global firm based in the United States that designs, manufactures, and sells aircraft, helicopters, rockets, satellites, and missiles all over the world.
It is one of the largest aerospace businesses in the world, with headquarters in Chicago, Illinois.
Boeing manufactures both commercial and military aircraft, such as the well-known 737, 747, and 787 types.
Demand, supply chain interruptions, and production efficiency are all factors that impact its manufacturing speed.
In recent years, Boeing has suffered a number of setbacks, including the grounding of its 737 MAX series jets, which has reduced its manufacturing pace and financial performance.
Boeing said on Wednesday that it intends to boost 737 Max production from 31 to 38 planes by 2023.
Given the ongoing production problems with certain planes, the comment was unexpected.
Boeing needs to send jets to airlines as quickly as possible, therefore the production pace for the best-selling planes will be the quickest in years.
Airlines are hoping to profit from a revival in air travel.
Furthermore, Boeing anticipates deploying 400 to 450 737 planes in 2023.
“This is an important year for us,” Boeing CEO Dave Calhoun told staff in a memo on Wednesday.
“As demand surges across our markets, we must focus together on execution and meeting our customer commitments.”
Boeing also plans to increase 787 Dreamliner manufacturing from three planes today to five planes one month later in 2023.
Shares and revenue
Boeing announced quarterly revenues of $17.92 billion, a 28% increase over 2022 and a $2 billion increase above projections of $17.43 billion.
According to the company, demand for their aircraft has surged.
Meanwhile, Boeing’s adjusted EPS loss for the quarter ($1.27) was higher than the $0.97 predicted by Wall Street.
“We delivered a solid first quarter and are focused on driving stability for our customers,” said Calhoun.
“We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term.”
“Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
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For 2023, the business reiterated its previous expectation of $4.5 billion to $6.5 billion in operational cash flow and $4 to $5 billion in free cash flow.
Boeing also confirmed its previous 737 Max prediction of 400 to 450 deliveries in 2023.
The data was released following a manufacturing setback with the 737 Max in mid-April, when the firm warned that a problem with fuselage brackets may cause deliveries to be delayed.
“We will work diligently through rework of affected airplanes in production and storage to ensure each meets our standards of prior delivery,” said Calhoun.
“This effort will impact the timing of deliveries over the next several months.”
Production and delivery
Dave Calhoun indicated that the problem would cause a two-week delay in manufacturing.
According to the company’s website, Boeing now has a backlog of 4,219 737 planes.
In February, Boeing’s 787 Dreamliner encountered a delivery delay, causing the firm to halt deliveries owing to a fuselage component failure.
When the company addressed the FAA’s concerns about the Dreamliner’s front pressure bulkhead in early March, the problem was resolved.
The 787 Dreamliner program, according to the business, is presently manufacturing three planes per month, with plans to increase production to five later in 2023.
They also intend to raise it to ten every month by 2025/2026.
Boeing signed an agreement with Saudi Arabia in March.
Saudi Arabian Airlines and a new business called Riyadh Air made an order with the company for about 121 787s.
A total of 78 planes are considered definite orders, with an additional 43 planes for sale.
Riyadh Air was the recipient of 72 of the 121 orders placed.
The transaction is expected to be worth $40 billion.
“It is significant,” said Calhoun.