Boeing The company reported a quarterly loss of $3.3 billion on Wednesday as problems in its defense unit reflected strides in its commercial aircraft business.
However, the manufacturer generated nearly $3 billion in free cash flow in the three months ending September 3. 30, up from $507 million in outflows the previous year. Boeing reiterated its forecast of positive free cash flow for this year.
Here’s how Boeing performed in the third quarter compared to analyst estimates that Refinitiv complied with:
- Adjusted loss per share: $6.18 vs. Expected earnings per share is 7 cents.
- he won: $15.96 billion vs. $17.76 billion expected.
The company’s shares are up more than 1% in early trading.
Boeing’s third-quarter revenue rose 4% last year to $15.96 billion. The company reported $2.8 billion in losses in its defense unit in programs including the KC-46 tanker and Air Force One. The company previously disclosed more than $1 billion in losses linked to the modification of two 747 jumbo jets to serve as Air Force One, a contract negotiated under former President Donald Trump.
“We are focused squarely on maturing these programs, mitigating risk and delivering to our customers and their mission-critical missions,” Boeing CEO David Calhoun said in an employee note on Wednesday.
A Boeing 737 Max 10 aircraft pauses while on the flight path before its maiden flight at Renton Municipal Airport on June 18, 2021 in Renton, Washington.
Stephen Brashear | Getty Images
Troubles have accumulated in the defense unit as the Boeing commercial unit recovers from the Covid pandemic, buoyed by a rebound in air travel.
Boeing’s commercial unit revenue was up 40% from a year ago to $6.26 billion. It delivered 112 aircraft in the third quarter, up from 85 a year earlier. Deliveries of the 787 Dreamliner resumed in August after a pause for most of the past two years to address a series of manufacturing defects.
Alaska Airlines The Seattle-based airline said on Wednesday it will exercise options to buy 52 Boeing 737 MAX aircraft for its fleet and rights to another 105 aircraft through 2030. The Seattle-based airline said the order was the largest in its 90-year history and that New planes will be too. Used to replace old aircraft and growth.
But Calhoun and other airline executives said supply chain problems and labor shortages are holding back increases in production.
“We are realistic about the environment we face and are taking comprehensive action,” Calhoun wrote to employees Wednesday. “Inside our production facilities, we don’t push the system too quickly. We slow down when necessary and work hard to ensure work is completed sequentially.”
Boeing struggled to stabilize after its 737 Max planes crashed, one nearly four years ago in Indonesia and the other in Ethiopia five months later, a crisis that grounded planes around the world.
The manufacturer is now trying to win federal regulator approval for new versions of that plane, the 737 Max 7 and 10, the smallest and largest in the family. But Boeing faces a year-end deadline to do so without adding additional alert systems for pilots, under new legislation passed in the wake of the accidents.
Boeing executives will discuss the results in a 10:30 a.m. ET call Wednesday with analysts, as the company will likely face questions about potential increases in commercial aircraft production and its latest timeline regarding certification of new Max versions.