Boeing Reports Two Pct Increase In Q1 Revenue To US$22.6 Bln

KUALA LUMPUR, April 28 (Bernama) -- The Boeing Company reported that first-quarter revenue rose two per cent to US$22.6 billion from US$22.14 billion in the same quarter last year due to the increased delivery of military aircraft and continued solid performance. "Higher year-over-year deliveries of military aircraft and continued solid operating performance on core production programmes drove revenue growth and strong cash flow for Boeing in the first quarter," said Chairman, President and Chief Executive Officer Dennis Muilenburg. "This performance enabled our ongoing investments in new product innovation and in our people, and the return of significant cash to shareholders through stock repurchases and dividends," he said in a statement issued in Chicago. Commercial Airplanes first-quarter revenue decreased to US$14.4 billion on lower delivery volume. Commercial Airplanes booked 121 net orders during the quarter. Backlog remains strong with over 5,700 airplanes valued at US$424 billion. Backlog at Defence, Space & Security was US$56 billion, of which 37 per cent represents orders from international customers. Looking ahead, Boeing said that the company's 2016 financial and delivery guidance is reaffirmed and reflects continued solid performance across the company. "Overall, we are pleased with our performance trends and our outlook for the year remains positive. On the tanker programme, we are making the investments necessary to meet our customer commitments, deliver the initial production aircraft on schedule, and transition the programme into full production," said Muilenburg. "Our teams are focused intensely on delivering on our existing commitments, including the production ramp-up associated with our large and diverse backlog, accelerating progress on quality, safety and productivity improvements company wide, returning greater value to shareholders through profitable growth, and investing in the future as we enter our second century in business." Operating cash flow in the quarter was US$1.2 billion, reflecting commercial airplane production rates, solid core operating performance and the timing of receipts and expenditures. Commercial Airplanes' first-quarter operating margin was 7.2 percent, reflecting the US$162 million pre-tax charge on the KC-46 Tanker programme, higher R&D, mix and a US$70 million pre-tax charge on the 747 programme. During the quarter, the company completed first flight of the 737 MAX. The 737 programme has captured nearly 3,100 orders for the 737 MAX since launch. Also during the quarter, the company began major assembly of the 787-10 ahead of schedule and launched the Next-Generation 737 freighter conversion programme. Defence, Space & Security's first-quarter revenue was US$8.0 billion. First quarter operating margin was 10.3 per cent, reflecting the US$81 million pre-tax charge recorded at BMA on the KC-46 Tanker programme partially offset by strong performance on production programmes. Boeing Military Aircraft (BMA) first-quarter revenue increased to US$3.7 billion, reflecting higher F-15 and C-17 deliveries. Operating margin was 9.1 per cent, reflecting the KC-46 Tanker programme charge partially offset by delivery mix. Also during the quarter, BMA was awarded a contract from the U.S. Navy for 20 P-8A Poseidon aircraft and a contract from the U.S. Army for 117 Apache helicopters. -- BERNAMA