Boeing released its fourth quarter earnings on Wednesday amid the continuing fallout from the Alaska Airlines depressurisation incident.
“While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day,” said Dave Calhoun, Boeing president and chief executive officer.
“As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders.”
Commercial Airplanes fourth quarter revenue increased to $10.5 billion driven by higher deliveries.
The company said it continues to cooperate with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9.
Boeing Commercial Airplanes said it was “taking immediate actions to strengthen quality on the 737 programme, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality”.
The company has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes’ quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing’s Board of Directors.
The 737 programme continues to deliver airplanes and its production rate is now at 38 per month. The 787 programme production rate is now at five per month.
During the quarter, Commercial Airplanes booked 611 net orders, including 411 737, 98 777X, and 83 787 airplanes, began certification flight testing on the 737-10, and resumed production on the 777X programme.
Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.
Defense, Space & Security fourth quarter revenue was $6.7 billion. Fourth quarter operating margin was (1.5) percent, primarily driven by $139 million of losses on certain fixed-price development programmes. Results were also impacted by unfavorable performance and mix on other programs.
During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, began the U.S. Air Force developmental flight test program for the T-7A Red Hawk, and Canada selected the P-8A Poseidon as its multi-mission aircraft. Backlog at Defense, Space & Security was $59 billion, of which 29 percent represents orders from customers outside the US.
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