News
Airbus, Boeing post Q1 results
April 28th 2017
Chicago-headquartered aircraft manufacturer Boeing this week reported a first quarter net profit of US$1.5 billion, a 19% improvement on last year’s first quarter despite 7.3% fewer revenues to US$21 billion. Read More »
The OEM’s expenses through to March 31 declined 9.6% to $17.3 billion and operating income was $2 billion, up 12.8% over an operating profit of $1.8 billion in the corresponding year-ago period.
"With a sharp focus on performance and productivity, our team delivered another quarter of solid financial results, including year-over-year earnings growth and strong operating cash flow," said Boeing chairman, president and CEO, Dennis Muilenburg. "In turn, we continued to position Boeing for growth with investments in new products and services, innovation, and our people, while again demonstrating our commitment to return significant cash to our shareholders."
"We also achieved major milestones, including the certification of the new 737 MAX 8 and first flight of the 787-10 Dreamliner, and we captured a $3.4 billion contract award for 268 Apache helicopters," the Boeing top executive noted.
Boeing’s Commercial Airplanes unit posted a 0.6% decrease in first quarter revenues to $14.3 billion as commercial deliveries declined 4% to 169 aircraft. At the same time, the manufacturer booked 198 commercial net orders during the quarter, growing its backlog at the end of the quarter to 5,700 aircraft valued at $417 billion.
"We remain on track to achieve our full-year revenue, earnings and cash flow targets as our teams deliver on our large and diverse order backlog,” Muilenburg said, adding the focus would be on “accelerating productivity, quality and safety improvements, strengthening execution on development programs, and capturing new business opportunities".
Boeing kept its full-year guidance, projecting revenues in the US$90.5 billion-US$92.5 billion range, of which US$62.5 billion-US$63.5 billion would be commercial aircraft revenues.
It expects to deliver 760-765 aircraft this year. Rival Airbus is forecasting 720 deliveries this year, according to the CFO, Harald Wilhelm.
Airbus Group also published its first quarter results this week. The Toulouse-based OEM reported a steeper than expected 52% year-on-year adjusted earnings decline but maintained its full-year guidance.
Airbus’ adjusted first quarter operating profit fell to 240 million Euros (US$262 million), while revenues grew 7% to 12.99 billion Euros.
The OEM’s Commercial Aircraft unit posted a 31% year-on-year profit decline to 281 million Euros, even though revenues improved 13% through to March 31. Airbus said this mainly reflected “the aircraft delivery mix, transition pricing and some higher ramp-up costs”.
The manufacturer further noted that good progress was being made on the A350XWB programme, following 13 deliveries in the first quarter, but customers were still “experiencing a number of in-service issues” with the A320neo, “which need to be resolved, in particular with the Pratt & Whitney GTF engine”.
