10:28 AM EDT, 04/24/2024 (MT Newswires) -- Boeing ( BA ) posted an unexpected narrower first-quarter loss on Wednesday, although revenue declined annually as the aircraft manufacturer slowed down production of its 737 models to improve quality issues.

The company's core loss came in at $1.13 per share for the March quarter, an improvement from the $1.27 per-share loss a year earlier. The consensus on Capital IQ was for a normalized per-share loss of $1.43. Revenue slipped 8% to $16.57 billion, trailing the Street's view for $17.22 billion.

Commercial airplane revenue tumbled 31% to $4.65 billion, as lower 737 deliveries and grounding of the 737-9 jetliners dragged down the tally to 83 in the first quarter from 130 last year. The company said it reduced output of its 737 program to below 38 planes per month to implement quality management system improvements and ease traveled work within its factory and supply chain.

Boeing ( BA ) is also executing a plan to address feedback from the Federal Aviation Administration audit of the 737 program. In January, the FAA launched an investigation into the company after a 737 Max 9 operated by Alaska Air (ALK) suffered a mid-air panel blowout. Boeing ( BA ) paid $162 million to Alaska Air in initial cash compensation related to the incident, though the amount is not reflected in the reported results.

"Our first quarter results reflect the immediate actions we've taken to slow down 737 production to drive improvements in quality," Chief Executive Dave Calhoun, who is set to step down at the end of the year, said in a statement. "We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future."

Revenue in the defense, space and security segment rose to $6.95 billion from $6.54 billion, while global services gained 7% to $5.05 billion, the company said. Shares of the company were up 1.2% in recent Wednesday trading.

Boeing's ( BA ) operational loss contracted to $86 million from $149 million. Operating cash flow deteriorated to negative $3.36 billion from negative $318 million because of the lower commercial deliveries, as well as unfavorable timing of receipts and expenditures. Free cash flow was negative $3.93 billion, widening from negative $786 million.

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