Boeing has seen revenues and profits from its Commercial Airplanes division fall in the first quarter of 2016 because of fewer aircraft deliveries.
Commercial Airplanes revenue fell by six per cent to $14.4 billion because deliveries during the quarter were down by four per cent to 176. Profits for the Commercial Airplanes division declined by 36 per cent to $1 billion. Revenue for the whole company was up two per cent to $22.6 billion though net profits were down nine per cent to $1.2 billion.
Boeing chairman, president and chief executive officer, Dennis Muilenburg says: “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.”
During the quarter, Boeing completed the first flight of the 737 MAX, began the major assembly of the 787-10 and launched the Next Generation 737 freighter conversion programme.
Boeing delivered 121 737s during the quarter, same as in 2015, but only one 747 and 767 each, compared to four of the former and five of the latter last year. It delivered one fewer 777 this year, down to 23, while 787 deliveries remained stable at 30.