Boeing has suspended the company’s forecast after first-quarter earnings fell behind analysts’ projections. Boeing had been tipped to hit $3.25 but the company’s core earnings settled for $3.16 a share.
The aircraft manufacturer’s revenue was, however, in line at $22.9 billion while operating cash flow slid almost 11 percent to $2.8 billion for the quarter. The latest figures gave investors an actual view of the impact the Boeing 737-Max model’s crashes have on the company.
Boeing‘s best selling aircraft, the 737-Max models, began to struggle for orders and deliveries after two crashes involving Lion Air in October 2018 and Ethiopian Airlines in March 2019, killed nearly four hundred people.
This affected the orders of Boeing this year, with the company recording zero order in the first-quarter of 2019 and cutting production of 737-Max from 52 airplanes a month to 42.
Boeing’s chairman, president, and CEO, Dennis Muilenburg, said:
“DUE TO THE UNCERTAINTY OF THE TIMING AND CONDITIONS SURROUNDING RETURN TO SERVICE OF THE 737 MAX FLEET, NEW GUIDANCE WILL BE ISSUED AT A FUTURE DATE.
“BOEING IS MAKING STEADY PROGRESS ON THE PATH TO FINAL CERTIFICATION FOR A SOFTWARE UPDATE FOR THE 737 MAX, WITH OVER 135 TEST AND PRODUCTION FLIGHTS OF THE SOFTWARE UPDATE COMPLETE.
“THE COMPANY CONTINUES TO WORK CLOSELY WITH GLOBAL REGULATORS AND OUR AIRLINE PARTNERS TO COMPREHENSIVELY TEST THE SOFTWARE AND FINALIZE A ROBUST PACKAGE OF TRAINING AND EDUCATIONAL RESOURCES.
“ACROSS THE COMPANY, WE ARE FOCUSED ON SAFETY, RETURNING THE 737 MAX TO SERVICE, AND EARNING AND RE-EARNING THE TRUST AND CONFIDENCE OF CUSTOMERS, REGULATORS AND THE FLYING PUBLIC.”
Boeing‘s revenue from commercial airplanes totalled $11.8 billion in the quarter, down 9% versus a year ago (due to fewer 737 aircraft deliveries). That drop was partially offset by higher margins from the 787.
Meanwhile, According to Moody, the aircraft manufacturer’s operating profit margin is $12 million to $15 million on each 737 Max 8 it delivers to customers.