The Boeing Company (BA) is scheduled to release its results for the first three months of the year on Wednesday, before the opening bell and its first revenue is expected to fall by more than a third, according to Wall Street.
The results come as Brazillian rival Embraer said on Monday said it had begun an arbitration process against the Seattle-based planemaker, after Boeing canceled a $4.2bn deal to buy it over the weekend that had been years in the making.
Meanwhile, Boeing chief executive Dave Calhoun told shareholders Monday that air travel demand won’t recover for two or three years, another challenge for the manufacturer that is still reeling from the grounding of its 737 Max that has suffered two fatal crashes even before the coronavirus pandemic.
The US planemaker is scrambling to cut costs to meet the weak demand for new airplanes, with Air travel in the US is about 5% of what it was a year ago.
Analysts expect the company’s first-quarter revenue to be down roughly $10bn billion from the approximately $28bn it reported in the same quarter last year
“When it does [recover], the commercial market will be smaller,” Calhoun said in a webcast of the company’s annual shareholder meeting.
Several factors that have influenced Boeing’s performance in the first quarter, resulting in a massive 66.4% year-over-year drop in commercial shipments. The company’s defense deliveries are also estimated to have slumped by 35%.
The 737 Max, which was once considered a key growth catalyst for Boeing’s revenues, has been weighing heavily on the company’s overall performance since last March. At the beginning of the year, the company halted production of this jet model altogether. Boeing’s commercial business is expected to have performed dismally, as a result