Aerospace and defense giant Boeing Co. reported Wednesday narrower net loss in its third quarter, benefited by higher revenues. Meanwhile, core loss was wider than expected. Further, the company trimmed its forecast for 737 airplane deliveries, amid production issues.
Further, the company now expects to deliver 375-400 units of 737 airplanes this year, lower than previously expected deliveries of 400-450 airplanes this year. According to the company, near-term deliveries and production will be impacted as the program performs necessary inspections and rework. The company plans to complete the final assembly transition to 38 per month by year-end, with plans to increase to 50 per month in the 2025/2026 timeframe.
The company also said its 787 program is now transitioning production to five per month and plans to increase to 10 per month in the 2025/2026 timeframe. The program still expects to deliver 70-80 airplanes this year.
Boeing further reaffirmed its guidance of $4.5 billion to $6.5 billion of operating cash flow and $3 billion to $5 billion of free cash flow.
Dave Calhoun, Boeing president and chief executive officer, said, “We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term. We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand.”
For the third quarter, net loss attributable to Boeing Shareholders was $1.64 billion or $2.70 per share, narrower than last year’s loss of $3.28 billion or $5.49 per share.
Core loss for the quarter was $3.26 per share, compared to loss of $6.18 per share a year ago.
On average, 20 analysts polled by Thomson Reuters expected loss of $2.79 per share for the quarter. Analysts’ estimates typically exclude special items.
The latest third-quarter results were impacted by unfavorable defense performance and lower 737 deliveries.
The company’s revenue for the quarter rose 13.4 percent to $18.10 billion from $15.96 billion last year. The Street was looking for revenues of $17.03 billion for the quarter.
Total company backlog at the quarter end was $469.18 billion, including over 5,100 commercial airplanes, compared to last year’s $404.38 billion.
Commercial Airplanes third-quarter revenue increased 25 percent from last year to $7.9 billion, driven by higher 787 deliveries. Total segmental deliveries, meanwhile, dropped 6 percent from last year to 105 units. The segment also recorded wider operating loss, reflecting lower 737 deliveries as well as abnormal costs and period expenses, including research and development.
Defense, Space & Security third quarter revenue was $5.48 billion, 3 percent higher than last year, and operating loss narrowed significantly.
Global Services revenue of $4.81 billion increased 9 percent, and the segment recorded 7 percent growth in earnings from operations.
On the NYSE, Boeing shares were trading at $183.42, up 0.6 percent.
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