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Boeing reports $22.9bn in revenue
April 24, 2019 | 8:42 PM
by Times News Service
During the quarter, the company paid $1.2 billion in dividends, reflecting a 20 per cent increase in dividends per share compared to the same period of the prior year. - Reuters file picture
 
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Muscat: Boeing reported $22.9 billion in revenue for the first-quarter of 2019. The company also announced that it was withdrawing its full-year 2019 financial forecast due to uncertainty around the timing and conditions surrounding the return to service of its 737 MAX fleet.

In a statement, Boeing Chairman, President and CEO Dennis Muilenburg said, "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. "As we work through this challenging time for our customers, stakeholders and the company, our attention remains on driving excellence in quality and performance and running a healthy sustained growth business built on strong, long-term fundamentals," he added.

Th company said that the previously issued 2019 financial guidance does not reflect 737 MAX impacts. 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 finalise a robust package of training and educational resources, it added.



"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," said Muilenburg.

"As we work through this challenging time for our customers, stakeholders and the company, our attention remains on driving excellence in quality and performance and running a healthy sustained growth business built on strong, long-term fundamentals," he added.



The quarter's operating performance was highlighted by key defence wins, strong commercial widebody performance and orders, continued robust services growth, and receiving Embraer shareholder approval for the proposed strategic partnership.

Operating cash flow was $2.8 billion in the quarter, primarily reflecting lower 737 deliveries as well as timing of receipts and expenditures. During the quarter, the company paid $1.2 billion in dividends, reflecting a 20 per cent increase in dividends per share compared to the same period of the prior year. The company repurchased 6.1 million shares for $2.3 billion in the quarter, all of which occurred prior to mid-March.

Cash and investments in marketable securities totalled $7.7 billion, compared to $8.6 billion at the beginning of the quarter. Debt was $14.7 billion, up from $13.8 billion at the beginning of the quarter primarily due to the issuance of new debt, the company said.

Commercial airplanes first-quarter revenue was $11.8 billion reflecting lower 737 deliveries partially offset by favourable mix. First-quarter operating margin was 9.9 per cent reflecting lower 737 deliveries partially offset by a higher margin on the 787 programme. The reported margin also reflects increased costs associated with the recent 737 production rate adjustment, Boeing said in a statement.

During the quarter, commercial airplanes delivered 149 airplanes and the production rate for the 787 increased to 14 airplanes per month. Commercial Airplanes captured several widebody orders during the quarter, including orders for 18 777X airplanes for British Airways parent company IAG, 20 787 airplanes for Lufthansa, and 10 787 airplanes for Bamboo Airways. The first 777X flight test airplane rolled out of the factory, and the programme remains on track for flight testing this year and first delivery in 2020.

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