Boeing's first quarter revenues down 7%

Boeing has reported higher first-quarter earnings and operating cash flow compared to the previous year, driven by solid execution on production programs and services. Revenue decreased to US$21.0bn, down 7% from 2016, reflecting the timing of commercial and defense aircraft deliveries. Commercial Airplanes first-quarter revenue was US$14.3bn on services growth, down 1% from 2016, offset by lower planned 737 deliveries, as the company prepares for 737 MAX entry into service in May. First-quarter operating margin increased to 8.5%, reflecting improved performance on production and services programs, cost growth on the initial production of KC-46 Tanker aircraft, and less favorable delivery mix. Operating cash flow in the quarter of US$2.1bn was driven by solid operating performance and timing of receipts and expenditures. During the quarter, Boeing successfully completed first flight of the 787-10 Dreamliner. The 737 program rolled out the first 737 MAX 9 and received FAA certification for the 737 MAX 8. Demand continues to be strong for the 737 MAX with more than 3,700 orders since launch. Commercial Airplanes booked 198 net orders during the quarter. Backlog remains robust with more than 5,700 airplanes valued at US$417bn.
For the full year, GAAP earnings per share guidance increased to between US$10.35 and US$10.55 from US$10.25 and US$10.45 and core earnings per share (non-GAAP) guidance increased to between US$9.20 and US$9.40 from US$9.10 and US$9.30, primarily driven by a lower-than-expected tax rate.