Summary
Boeing's first quarter 2019 results, filed on April 23, 2019, show a decrease in total revenues to $22.9 billion from $23.4 billion in the prior year's comparable period. This decline was primarily driven by a significant revenue decrease in the Commercial Airplanes (BCA) segment, largely attributable to the grounding of the 737 MAX aircraft following two fatal accidents. Despite the revenue dip, the company is actively managing production rates and developing software updates and training programs for the 737 MAX. Net earnings also saw a reduction, falling to $2.15 billion from $2.48 billion in Q1 2018, with diluted earnings per share at $3.75 compared to $4.15. The grounding of the 737 MAX is expected to continue to adversely affect revenues, operating earnings, and cash flows until deliveries resume. The company is working closely with regulatory authorities for investigations and for the aircraft's return to service, while also facing increased costs associated with production adjustments.
Financial Highlights
53 data points| Revenue | $22.92B |
| Cost of Revenue | $18.64B |
| Gross Profit | $4.27B |
| R&D Expenses | $866.00M |
| Operating Income | $2.35B |
| Net Income | $2.15B |
| EPS (Basic) | $3.79 |
| EPS (Diluted) | $3.75 |
| Shares Outstanding (Basic) | 567.70M |
| Shares Outstanding (Diluted) | 571.80M |
Key Highlights
- 1Total revenues decreased by $465 million to $22.9 billion, primarily due to lower deliveries in the Commercial Airplanes (BCA) segment, heavily impacted by the 737 MAX grounding.
- 2Net earnings declined to $2.15 billion from $2.48 billion in the prior year's quarter, with diluted earnings per share falling to $3.75 from $4.15.
- 3The 737 MAX grounding led to a reduction in the production rate from 52 to 42 aircraft per month and increased production costs.
- 4Defense, Space & Security (BDS) revenues increased by $130 million, driven by higher satellites and weapons revenue, and a contract award for early warning aircraft.
- 5Global Services (BGS) revenues saw a substantial increase of $669 million, largely due to the acquisition of KLX, Inc. and higher government services revenue.
- 6Operating cash flow decreased to $2.8 billion from $3.1 billion, partly due to higher inventory spending related to the 737 MAX suspension.
- 7Boeing announced plans to reduce the 737 production rate from 52 to 42 aircraft per month effective April 15, 2019, citing impacts from the 737 MAX grounding.