CHICAGO - For the first quarter of 2017, Boeing reported sales of $21.0 billion, down 7 percent from sales of $22.6 billion. Net income for the first quarter was $1.45 billion, compared to $1.22 billion in the first quarter of 2016.
"With a sharp focus on performance and productivity, our team delivered another quarter of solid financial results, including year-over-year earnings growth and strong operating cash flow," said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. "In turn, we continued to position Boeing for growth with investments in new products and services, innovation, and our people, while again demonstrating our commitment to return significant cash to our shareholders."
"We also achieved major milestones, including the certification of the new 737 MAX 8 and first flight of the 787-10 Dreamliner, and we captured a $3.4 billion contract award for 268 Apache helicopters."
"We remain on track to achieve our full-year revenue, earnings and cash flow targets as our teams deliver on our large and diverse order backlog. As we do so, we're focused on accelerating productivity, quality and safety improvements, strengthening execution on development programs, and capturing new business opportunities."
Backlog grew to $480 billion, up from $473 billion at the beginning of the quarter, and included net orders for the quarter of $27 billion.
INDUSTRY SEGMENTS
Commercial Airplanes
Commercial Airplanes first-quarter revenue was $14.3 billion (1Q16: $14.4 billion) on services growth, offset by lower planned 737 deliveries, as Boeing prepares for 737 MAX entry into service in May. First-quarter operating margin increased to 8.5 percent, reflecting improved performance on production and services programs, cost growth on the initial production of KC-46 Tanker aircraft, and less favorable delivery mix.
Operating income for the quarter was $1.21 billion compared to $1.03 billion in the first quarter of 2016.
During the quarter, Boeing successfully completed first flight of the 787-10 Dreamliner. The 737 program rolled out the first 737 MAX 9 and received FAA certification for the 737 MAX 8. Demand continues to be strong for the 737 MAX with more than 3,700 orders since launch.
Commercial Airplanes booked 198 net orders during the quarter. Backlog remains robust with more than 5,700 airplanes valued at $417 billion.
Defense, Space & Security
Defense, Space & Security first-quarter revenue was $6.5 billion (1Q16: $7.9 billion). First-quarter operating margin increased to 11.3 percent, reflecting improved performance at BMA.
Operating income for the quarter was $737 million compared to $822 million in the first quarter of 2016.
Boeing Military Aircraft (BMA) first-quarter revenue was $2.6 billion (1Q16: $3.6billion), reflecting lower planned deliveries, and operating margin increased to 12.2 percent on improved performance. During the quarter, BMA was awarded a contract for 268 AH-64E Apache helicopters from the U.S. Army, a contract for 17 P-8A Poseidon aircraft from the U.S. Navy, Royal Australian Air Force, and the U.K. Royal Air Force, and a contract from the U.S. Air Force for an additional 15 KC-46 Tanker aircraft.
Network & Space Systems (N&SS) first-quarter revenue was $1.6 billion (1Q16: $1.7 billion), reflecting lower volume on Commercial Crew. Operating margin was 6.3 percent driven by lower satellite services volume and investments in development efforts. During the quarter, N&SS announced an order for a 702 satellite with a dual payload from SKY Perfect JSAT and Kacific.
Global Services & Support (GS&S) first-quarter revenue was $2.3 billion (1Q16: $2.6 billion), reflecting timing of contracts. Operating margin increased to 13.6 percent largely reflecting improved performance. During the quarter, GS&S was awarded a contract from the Republic of Korea Air Force to continue long-term sustainment of F-15 aircraft over the next five years.
Backlog at Defense, Space & Security was $63 billion, of which 34 percent represents orders from international customers.
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