Boeing He reduced his losses in the first quarter and is preparing to increase the monthly production of 737 Max Jets, since CEO Kelly Ortberg said the glider could send some airplanes destined to China to other airlines in the midst of the commercial war.
Boeing plans to seek the approval of the Federal Aviation Administration at the end of this year to increase the production of the best -selling aircraft.
Boeing reported a net loss of the first quarter of $ 31 million, an improvement of a loss of $ 355 million the previous year, since revenues increased by 18% to $ 19.5 billion, slightly before the estimates of analysts, and Boeing aircraft deliveries increased almost 60%.
The company’s cash burn of approximately $ 2.3 billion was an improvement with respect to the almost $ 4 billion used in the first quarter of 2024, and it was better than analysts expected. Ortberg told “Squawk on the Street” of CNBC that the company is on the way to generate cash in the second half of the year.
Boeing shares increased 6% on Wednesday to $ 172.37.
The results include only the impact of global tariffs as of March 31, the company said. The manufacturer is currently caught in the shopping war of President Donald Trump, which is ready to increase the prices of aircraft and imported parts and materials.
Ge aerospace The CEO Larry Culp said Tuesday that he met with Trump and suggested to restore tax -free trade for the aerospace industry, an important exporter from the United States that helps soften the United States commercial deficit. GE, which manufactures aircraft engines, and RTX He said they expect tariffs to cost more than $ 1 billion combined this year.
“While we are closely observing the developments in global trade, our strong start of the year combined with the demand for airplanes and our accumulation of medium dollars for our products and services gives us the flexibility we need to navigate in this environment,” said the CEO of Boeing, Ortberg, in a staff note on Wednesday.
Ortberg said in a earning call that the demand is still strong for his plane and said that the company’s request portfolio is worth more than $ 500 billion.
The company plans to highlight some of its Boeing aircraft that were destined for Chinese airlines after that country stopped receiving its aircraft due to the commercial war with the United States.
“We will not continue building airplanes for customers that will not take them,” he said.
This is how Boeing worked compared to what Wall Street analysts surveyed by LSE expected for the first quarter:
- Loss by action: 49 tight cents compared to $ 1.29 expected loss
- Revenue: $ 19.5 billion compared to $ 19.45 billion expected
By action, the company reported a loss of 16 cents, compared to a loss of 56 cents during the same quarter of the previous year. Adjusting unique articles related to pension costs and income taxes, among others, Boeing reported a loss of 49 cents per share.
Ortberg, who was hired last year and in charge that the manufacturer has passed a series of safety and manufacturing crisis, the progress outlined, including the production rates of his best selling 737 Max.
In recent months, the CEO has promoted the improved safety and manufacturing processes in Boeing factories while trying to guide the company beyond several accidents, including a door cap that exploded from a flight in the air in the air in January 2024 after the 737 Max left the Boeing factory without key bolts. There were no important deaths or injuries.
Last week, Boeing published the results of an employee survey that showed that only 27% would recommend working in Boeing and that 67% were proud to work in Boeing, below 91% in 2013. Less than half of employee respondents said they had confidence in the capacity of high -level leaders to “make decisions, communicate the address and respond to the concerns raised by the employees.”
From the January 2024 accident, Boeing must receive the approval of FAA to increase the production of 737 Max to more than 38 aircraft per month. Boeing had been producing significantly below that level after the accident and a union strike of almost two months last year arrested much of the company’s manufacture.
Boeing said that once it has stabilized its production rate at 38 per month, it will move up to 42, if you receive approval and then increase it in increases of five per month, up to approximately 52 per month, with approximately six months between each walk.
Revenue in the Boeing commercial aircraft unit increased 75% during the first quarter for a year to $ 8.1 billion, with deliveries of up to 130 aircraft from 83 a year ago.
“We are moving in the right direction and advancing when informing our results of 2025 for today’s first quarter,” Ortberg said in Wednesday’s staff. “From delivering more planes to obtaining a transformative victory for the fighter of the future, a lot of work occurs in our teams, and we are seeing positive results in the four key areas of our recovery plan that will position us during the rest of the year and beyond.”
Boeing has been re -enforced his efforts in his main businesses. On Tuesday, he announced that he would sell parts of his digital aviation businesses, including his Jeppesen navigation unit, Thoma Bravo for $ 10.55 billion in an cash agreement.
The income in its defense unit, which has been plagued with excess costs and quality problems, fell 9% during the first quarter to $ 6.3 billion, although the company recently obtained a great victory after Trump gave Boeing a contract to build the new combat aircraft of the US Air Force. UU., Dobló the F-47.
