SAN FRANCISCO, April 30 (Xinhua) -- Boeing on Wednesday reported a loss of 641 million U.S. dollars in the first quarter, along with plans to cut its workforce and aircraft production amid the COVID-19 pandemic and the 737 MAX grounding.
The company announced its financial results for the first quarter with revenues of 16.9 billion dollars, and 1.11 dollars GAAP (Generally Accepted Accounting Principles) loss per share, compared with 22.9 billion dollars, and 3.75 dollars earnings per share in the same period of 2019.
Boeing Commercial Airplanes' first-quarter revenue was 6.2 billion dollars, compared with 11.8 billion dollars a year ago, according to the company's report.
"The pandemic is also delivering a body blow to our business, affecting airline customer demand, production continuity and supply chain stability," Boeing president and CEO David Calhoun said in a letter to employees.
Boeing updated its production rate assumptions to reflect the impact of COVID-19 on its operations and demand outlook. The 787 aircraft production rate will be reduced from 14 per month to 10 per month in 2020, before being gradually reduced to seven per month by 2022. The 777/777X combined production rate will be reduced to three per month in 2021.
The 737 MAX aircraft production will resume at low rates in 2020 and gradually increase to 31 per month during 2021, with further gradual increases to correspond with market demand, the company said.
Boeing has begun taking action to lower its workforce by roughly 10 percent through a combination of voluntary layoffs, natural turnover and involuntary layoffs.
"That is 10 percent in total for the enterprise. We'll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers -- more than 15 percent across our commercial airplanes and services businesses, as well as our corporate functions," Calhoun said in the letter.