Boeing 1Q profits squeeze by twin-aisle slowdown

Washington DC
This story is sourced from Pro
See more Pro news »

Boeing today reports that slower projected twin-aisle deliveries in the future has already started squeezing profits.

The Chicago-based airframer's first quarter earnings dropped 43% in the first quarter to $1.03 billion. Boeing also lowered its earnings per share guidance for the year to between $4.70 and $5.00 from a range of $5.05 to $5.35.

The earnings crunch is blamed on Boeing's previous decision to trim output on the 777 production line after 2010 and slow down production increases for the 747-8 and 767.

Boeing Commercial Airplanes revenue guidance and delivery forecast remains unchanged at between $33 billion to $34 billion and 480 to 485, respectively.

"Performance across the overwhelming majority of our programmes remain solid, and we are making progress toward our milestones on the 787 and other important programmes," said Jim McNerney, Boeing chairman, president and CEO.

As previously reported, Boeing deliveries in the first quarter increased 5% to 121 aircraft, collecting $8.55 billion in revenues.