The Boeing Company’s [NYSE: BA] first-quarter 2009 earnings per share decreased 47 percent to $0.86 driven by the previously announced $0.38 per share impact from pending twin-aisle production rate changes and lower delivery price escalation forecasts in commercial airplanes. The majority of this earnings impact was recorded as an increase in the reach-forward loss position of the 747 program.

Excluding the effects of a weakened commercial airplane market, solid execution on programs across Integrated Defense Systems and Commercial Airplanes underpinned the quarter's results. Results were also impacted by a less favorable delivery mix in defense and higher expense for research and development. Boeing’s quarterly revenue rose 3 percent to $16.5 billion, while its operating cash flow was $0.2 billion, reflecting continued investment in development programs and lower advances from commercial airplane orders. Free cash flow was ($0.2) billion. Boeing lowered its 2009 earnings per share guidance to between $4.70 and $5.00 primarily due to the lower price escalation forecasts. Total company backlog at quarter-end was $339 billion, down 4 percent in the quarter, driven by run-off of backlog through revenues, the lower price escalation forecast, and previously announced 787 cancellations, partially offset by new orders in IDS for C-17 and integrated logistics. To read the entire financial report, select this direct link.