Boeing reports Q1 YOY growth; third KC-46A tanker joins flight test program

Cleveland, Ohio –  In a recent announcement to shareholders, The Boeing Company reported higher first-quarter (Q1 2017) earnings and operating cash flow compared to 2016's first quarter.

"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.

"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."

Total company backlog at quarter-end was $480 billion, up from $473 billion at the beginning of the quarter, and included net orders for the quarter of $27 billion.

Commercial Airplanes deliveries for Q1 2017 were 169 versus 176 in Q1 2016, while the business unit's Q1 2017 revenue was $14.3 billion, down 1% compared to the previous year due to lower planned 737 deliveries as the company prepares for the 737 MAX’s entry into service. Commercial Airplanes booked 198 net orders during the quarter. Backlog remains at more than 5,700 airplanes valued at $417 billion.

Defense, Space & Security Q1 2017 revenue was $6.5 billion; Network & Space Systems Q1 revenue was $1.6 billion; and Global Services & Support Q1 revenue was $2.3 billion. Backlog at Defense, Space & Security was $63 billion, of which 34% represents orders from international customers.

The company's 2017 updated financial and delivery guidance shows commercial airplane deliveries expected to be 760 to 765 units, the same as the previous outlook.

KC-46 tanker test program expands
Boeing now has six aircraft in its KC-46 tanker test program, expanding its ability to complete ground and flight-test activities as it progresses toward first deliveries to the U.S. Air Force.

The newest KC-46 aerial refueling aircraft, the second low-rate initial production plane, completed its first flight April 29, 2017 (pictured above). Its activities will test whether the KC-46 can safely operate through electromagnetic fields produced by radars, radio towers, and other systems.

Boeing is also re-configuring one of its 767-2C aircraft into a tanker, to have four KC-46 tankers in testing.

To date, the program’s test aircraft have completed 1,600 flight hours and more than 1,200 contacts during refueling flights with F-16, F/A-18, AV-8B, C-17, A-10, and KC-10 aircraft. The KC-46A multirole tanker can refuel allied and coalition military aircraft compatible with international aerial refueling procedures and can carry passengers, cargo, and patients.

Boeing expects to build 179 KC-46 tankers derived from its commercial 767 airframe in Everett, Washington.