US aerospace and defence giant Boeing, with the release of its results for the first quarter of this year, has assured that it is working with aviation regulators and customers around the world to ensure a safe return to service of its troubled 737 MAX, the fourth generation of its hitherto renowned 737 single-aisle airliner family.

The previous generations were the original – the 737-100 and 737-200 models; the classic – the 737-300, 737-400 and 737-500; and the Next Generation – the 737-700, 737-800 and 737-900ER. The 737 MAX 8 model suffered two similar fatal crashes in five months in late 2018 and early 2019, which killed a total of 346 people.

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” assured Boeing chairperson, president and CEO Dennis Muilenburg.

“As we work through this challenging time for our customers, stakeholders and the company, our attention remains on driving excellence in quality and performance and running a healthy sustained growth business built on strong, long-term fundamentals.”

Boeing reported that steady progress was being made towards the certification of the software update for the 737 MAX. More than 135 software test and production flights had been completed. “The company continues to work closely with global regulators and our airline partners to comprehensively test the software and finalise a robust package of training and educational resources,” said Boeing in its press release.

Regarding its financial prospects, the group cautioned that the guidance it had issued earlier this year had not reflected the impact of the 737 MAX crashes and the subsequent global grounding of the aircraft. The group would issue new guidance on an as-yet-to-be-announced future date.

Total group revenues for the first quarter (1Q19) came to $22 917-million, which was 2% down on the revenues of $23 382-million accrued during the first quarter of last year (1Q18). Calculated according to Generally Accepted Accounting Principles, the group’s earnings from operations came to $2 350- million in 1Q19, an 18% drop on 1Q18’s $2 875-million; net earnings, at $2 149-million, were 13% down on 1Q18’s $2 477-million, while operating cash flow was $2 788-million – an 11% decline on the $3 136-million of the same period last year. The operating margin for 1Q19 was 10.3%, compared with 12.3% for 1Q18.

Boeing Commercial Airplanes delivered 149 aircraft during the first quarter, a 19% drop in relation to the 184 delivered during 1Q18. This division recorded revenues of $11 822-million during 1Q19, down 9% on the $12 945-million during last year’s first quarter. Earnings from operations were $1 173-million, a drop of 17%, compared with 1Q18’s $1 412-million. The operating margin in 1Q19 was 9.9%, compared with the 10.9% in 1Q18. “Commercial Airplanes’ backlog remains healthy, with over 5 600 airplanes valued at $399-billion,” said the group.

Boeing Defence, Space & Security enjoyed revenues of $6 611-million in 1Q19, an increase of 2% on the $6 481-million of 1Q18. Earnings from operations came to $847-million, a 12% jump from the $757-million of the same period last year. The operating margin was 12.8%, up from the 11.7% of 1Q18. This division won major contracts from both the US and international customers during the quarter, worth $12-billion, which increased its backlog to $67-billion, of which 31% was accounted for by customers outside the US.

Boeing Global Services saw its revenues in 1Q19 jump by 17% to $4 619-million, compared with the $3 950-million of 1Q18. Earnings from operations increased slightly (1%) to $653-million from 1Q18’s $647-million. However, this division’s operating margin declined a little, to 14.1% in 1Q19, compared with the 16.4% of 1Q18.