Boeing first-quarter revenue tops expectations as CEO backs slowdown in output

Investing.com -- Boeing (NYSE:BA) has reported better-than-expected first-quarter revenue and a core loss per share of $1.13, as Chief Executive Dave Calhoun says that the embattled planemaker has been making efforts to slow production in order to "drive improvements" in quality.

Scrutiny has been intensifying on the safety of Boeing's airplanes since a dangerous mid-air blowout in January on one of its MAX 9 jets operated by Alaska Airlines.

In a statement, Calhoun, who is set to step down from the helm of the firm later this year, promised that Boeing will "take the time necessary" to strengthen its safety management systems.

"[T]his work will position us for a stronger and more stable future,” he added.

According to Reuters, Calhoun told employees that the business now finds itself in a "tough moment" in the near term, conceding that the deliberate slowdown in deliveries will be difficult for "our customers and for our financials." However, he stressed that "safety and quality must and will come above all else."

Deliveries of Boeing's commercial airplanes slumped by 36% to 83 in the three months ended on March 31, which the group said reflected a broader deceleration in production in its key 737 program. Boeing noted that it is also implementing a "comprehensive action plan" to address feedback from an audit by federal aviation regulators of its 737 production process.

"[T]he key question for Boeing right now is when can they deliver airplanes anywhere near demand," analysts at Goldman Sachs said in a note to clients. "The company took [the first quarter] and likely [the second quarter] to perform quality stand-downs, eliminate traveled work, and implement other changes to product quality. That’s what is needed and can put them in a successful position long-term."

Total revenues slipped by 8% to $16.57 billion, although this topped Bloomberg consensus estimates of $16.25 billion thanks in part to improved performance and higher volumes at Boeing's defense unit.

Shares in the company edged higher in early U.S. trading on Wednesday.