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Boeing posts third quarter loss as a dog airliner, space capsule issue

Boeing reported a third quarter loss on Wednesday. This is due to the difficulty in solving the problem of space capsules designed to carry astronauts to 787 Dreamliner planes and space stations.

These setbacks cast a shadow over increasing orders and deliveries as airlines and Boeing brashly recovered from the pandemic that devastated air travel and demand for new planes.

Boeing said it lost $ 132 million, of which $ 109 million belonged to shareholders.

Chicago-based Boeing said it would help the company sell more planes by deploying a vaccine against COVID-19 and easing a global travel ban, and hopes to sell the plane. Was shown.

But sooner, Boeing faces more uncertainty about major programs.

The company has a large number of 787 and 737 Max jets parked. We have not delivered the 787 for several months due to a series of manufacturing defects involving substandard titanium parts.

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CEO David Calhoun said he didn’t know when delivery of the 787 would resume. “I’m not sure until I’m sure,” he told analysts in a conference call. “We are far more than half.”

According to Calhorn, the company plans to fix a problem with the 787, a large plane designed for long-haul international flights, and revives Max after two fatal crashes and global ground contact. In the same way, work with regulators to get approval for the plane’s amendments. .. For Max, the process took 18 months.

Boeing has lost a major source of funding as long as those deliveries are suspended.

Boeing reduced production of the 787, incurring $ 183 million in the third quarter. Ultimately, we expect the “abnormal cost” of the plane to absorb $ 1 billion.

Boeing also paid $ 185 million in the third quarter for the troubled Starliner space capsule. The 2019 unmanned test flight failed to achieve the correct trajectory and there was a problem with the valve of the propulsion system, so the second flight was scrubbed in August. NASA and Boeing will try to launch again next year.

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Boeing has resumed delivery of the 737 Max and has won a large number of new orders for airplanes, but is trying to reduce the inventory of 370 aircraft parked in various locations across the country.

China is Boeing’s largest market before the crash, and the company is still waiting for regulators to fly the plane again. If the approval isn’t obtained within the next six to twelve months, Calhorn said, the company will need to adjust its plans to increase maximum production.

Boeing is currently producing 19 Max Jets a month at a factory near Seattle, with the goal of increasing to 31 a month early next year. This is what Cohen’s aerospace analyst Kai von Lemor called “ambitious.”

Third-quarter results were compared to a loss of $ 449 million during the same period last year when demand for new planes collapsed due to a pandemic.

The most recent loss was 19 cents per share, but the loss, excluding special items, was even wider, at 60 cents per share. According to a FactSet survey of 16 analysts, Wall Street expected an adjusted loss of 20 cents per share.

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Von Lemor called it the Deck Clear Quarter. The core loss was wider than expected, but the cash outflow wasn’t as bad as feared, he said in a note to customers.

Boeing’s commercial aviation business suffered an operating loss of $ 963 million, despite a 24% increase in revenue to $ 4.46 billion. Boeing delivered 85 jets, primarily Max, to airlines and other customers this quarter, up from 28 in the previous year.

The company’s defense and space sector earned $ 436 million and its services sector earned $ 644 million, providing a sense of stability in all the turmoil in the commercial aviation business.

Boeing’s total revenue is $ 15.28 billion, well below analysts’ forecast of $ 16.70 billion. Two years ago, before the pandemic, quarterly revenue was $ 19.98 billion.

The company’s share price fell 1.5% to close at $ 206.61.

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David K├Ânig can be reached at www.twitter.com/airlinewriter

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This story has been updated to correct Boeing’s loss of $ 132 million, including losses due to non-controlling interests, of $ 132 million, not $ 132.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



Boeing posts third quarter loss as a dog airliner, space capsule issue

Source link Boeing posts third quarter loss as a dog airliner, space capsule issue

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