Boeing on Wednesday reported a wider loss and weaker revenue than analysts had expected for the first three months of the year amid higher costs and delays, including pushing back production of its next-generation twin-aisle plane.
The company said it lost nearly $1.5 billion in the first quarter on total revenue of just under $14 billion, both just below analysts’ estimates. The company also reported a loss of more than $2 per share.
“While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we’re making toward our key commitments,” Dave Calhoun, Boeing’s chief executive, said in a statement.
The slowdowns and higher costs stemmed from Russia’s war in Ukraine and regulators’ quality concerns. The company reported negative operating cash flow for the quarter of $3.2 billion, but said it still expected positive cash flow for the year. Boeing’s stock fell 7.5 percent on Wednesday.
Deliveries of the 787 Dreamliner were paused nearly a year ago amid quality concerns. Boeing said it had submitted a certification plan for the twin-aisle plane to the Federal Aviation Administration and completed necessary fixes on some Dreamliners, with test flights underway. The company said it stood by an earlier estimate that the delays would cost it about $2 billion, a portion of which was incurred in the first quarter. Boeing is producing the plane at a low rate, but plans to eventually restore production to five 787s per month.
Boeing’s global services business also performed well in the quarter, with revenue of $4.3 billion, up 15 percent from a year earlier.