(COURTESY: Boeing)
Quarterly revenue slipped 2% to $22.9 billion, while earnings from operations slid 18% to $2.4 billion with an operating margin of 10.3%. Net earnings fell 13% to $2.1 billion, while profit slipped 10% to 3.75 per diluted share.
On a non-GAAP basis, core operating earnings slumped 21% to about $2 billion, with core earnings falling 13% to $3.16 per share.
The market expected a double-digit decline in earnings in the commercial airline division, with the consensus estimate for net earnings at $3.33 per share on revenues of $23.51 billion. Both numbers missed these estimates.
“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 Boeing Chairman, President and CEO Dennis Muilenburg.
In the second week of April, the Boeing stock fell after the US-listed aircraft maker announced its decision to cut production of its 737 MAX aircraft — sending shares of aerospace groups Meggitt, Melrose and Safran down as well.
This came right after Boeing started the month with its decision to cut its monthly 737 aircraft production by about 20%. Due to this uncertainty, Boeing deferred from giving an update on its future. “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,” read an official statement from Boeing.