The Boeing Company has reported a lower first quarter profit, although it remained within its guidance for the three months.
The company recorded net income of US$519m (A$559m) for the quarter, as revenue declined by eight per cent to US$15.2bn (A$16.4bn). Despite the fall in revenue, the company’s earnings from operations increased by 15 per cent to US$ 1.17bn (A$1.26bn).
“With clear progress on the 787 and 747-8, solid financial performance and marked improvement in our customer outlook, we continue to draw on the positive momentum we saw at the end of 2009,” said Jim McNerney, Boeing chairman, president and chief executive officer. “Our outlook remains attractive, and we are focused on executing well and delivering on our commitments to customers.”
Boeing Commercial Airplanes saw a 13 per cent decline in revenue to US$7.5bn (A$8bn), primarily driven by an 11 per cent fall in deliveries as a result of lower than planned deliveries of 747s and the Koito seat issue. The unit recorded net orders of 83 aircraft over the three months, leaving it with a backlog valued at US$250bn (A$269bn). Operating earnings for BCA increased by 63 per cent to US$679m (A$731m).
Boeing Defense, Space & Security (BDS) also recorded a fall in revenues, down by one per cent as lower revenues from the Network and Space Systems unit offset gains in Military Aircraft and Global Services and Support. Operational earnings from BDS dropped by six per cent to US$664m (A$715m).