Boeing burned through billions of dollars of cash last quarter as it languished under intense scrutiny from U.S. regulators and moved to soothe concerns over quality issues.
Arlington, Virginia-based Boeing burned through $3.93 billion over the first three months of 2024, far more than the $786 million it recorded during the same time last year, according to a Wednesday regulatory filing. The aerospace giant ended the quarter with $7.5 billion in cash and investments in short-term securities, down from $16 billion at the beginning of the quarter. Some of the cash went to paying off about $4.4 billion in debt.
“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” Boeing CEO Dave Calhoun, who announced his coming resignation last month, said in a statement. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”
Boeing stock climbed 3% in pre-market trading Wednesday. The stock has lost more than 30% in value since the start of the year, making it one of the worst performers in the S&P 500.
Boeing is struggling to navigate the fallout after a door plug blew out mid-flight on an Alaska Airlines-operated 737 Max 9 plane. The incident has led to a Justice Department criminal probe, investigations from federal safety regulators, passenger lawsuits, and a slew of whistleblowers.
The company reported $16.57 billion in revenue, down 8% year-over-year, and a loss of $1.13 per share. Its earnings were bolstered by Boeing’s defense, space, and security division, which posted an operating profit after failing to do so in several previous quarters.
But Boeing’s commercial unit recorded a 31% year-over-year drop in revenue to $4.6 billion because of the 737 issues. The company delivered just 83 jets to customers, compared to 130 during the same time in 2023, as it slows production and addresses quality control issues. Its backlog of orders includes more than 5,600 planes valued at $448 billion.