Boeing posted a first-quarter net profit of $1.22 billion, down 9% from net income of $1.34 billion in the prior-year period, and reaffirmed guidance that full-year 2016 revenue and commercial aircraft deliveries will be slightly down from 2015.
The manufacturer’s first-quarter revenue rose 2% year-over-year to $22.63 billion and operating profit was $1.79 billion, down 11% from operating income of $2.02 billion in the 2015 March quarter.
The Commercial Airplanes unit’s first-quarter revenue of $14.4 billion was down 6% year-over-year as commercial aircraft deliveries fell 4% from 184 in the 2015 first quarter to 176 in the 2016 March quarter. Commercial Airplanes’ bottom line continues to be hit by charges from the KC-46 tanker program ($162 million in the first quarter) and the 747 program ($70 million in the first quarter). Charges from the KC-46 program are taken by the commercial division because the aerial refueler is based on the 767 platform.
First-quarter commercial aircraft deliveries included 121 737NGs, 30 787s, 23 777s, one 767 and one 747-8. Commercial Airplanes booked 121 net orders in the quarter, taking Boeing’s commercial backlog to over 5,700 aircraft valued at $424 billion.
Boeing reiterated guidance for 2016 revenue of between $93 billion and $95 billion, which would be short of 2015’s record full-year revenue of $96.11 billion. Commercial aircraft deliveries for the full year are expected to be in the 740-745 range, which would fall short of the record 762 commercial aircraft delivered by Boeing last year.
Chairman, president and CEO Dennis Muilenburg has attributed the anticipated fall in revenue and deliveries to the company’s careful transition to 737 MAX production, and predicted a return to revenue growth in 2017.