Boeing said today that its first-quarter profit fell 50% from a year ago to $610m, citing a global downturn that presents 'unprecedented challenges' for the aerospace company.
The Chicago-based aviation giant also downgraded its outlook for the rest of 2009, saying commercial airplane orders will be weaker than previously anticipated.
The first quarter profit amounted to 86 cents per share, below most analyst estimates of 91 cents per share. Revenues rose 3% to $16.5 billion amid higher commercial airplane deliveries and higher volume in defence sales.
Boeing said most of its weakness came from civil aviation, with airlines cutting back on new orders in face of a deep global economic crisis.
'The expanded global economic downturn is presenting unprecedented challenges in our commercial airplane markets,' Boeing chairman and CEO Jim McNerney said.
'We believe we are better positioned than most companies to withstand the ongoing pressures of this economy, and we are not hesitating to take necessary actions to preserve our financial strength and maintain our ability to invest and grow for the long term,' he added.
The company said production on its new 787 Dreamliner is on the revised schedule announced in December. It expects the first flight to occur in the second quarter of 2009 with deliveries to begin in the first quarter of 2010.
Boeing saw orders for 32 airplanes cancelled 'by mutual agreement with customers' during the quarter. That left the number of orders at 886 airplanes from 57 customers.
Boeing said profits were hurt by reduced margins on commercial planes and by postponing planned increases in 747-8 and 767 production.
The company said profits in its commercial airplane division fell 58% to $417m. Part of the reduction came from a 'loss position' on its 747 jumbo jet programme.
Boeing's defence and space unit earned $709m, a drop of 18% from a year ago, reflecting a 'less favourable delivery mix in defence and higher expense for research and development.'
