An worker walks past a Boeing 737 Max aircraft seen parked on the Renton Municipal Airport in Renton, Washington, January 10, 2020.
Lindsey Wasson | Reuters
Boeing results topped analyst expectations Wednesday because of a pickup in business aircraft deliveries because the manufacturer increases production, but losses in its defense and space businesses drove the manufacturer into the red for the quarter.
The corporate generated $2.6 billion of free money flow within the second quarter, ahead of analyst forecasts, and reiterated its full-year guidance of between $3 billion and $5 billion of free money flow.
related investing news
Boeing shares were up nearly 6% in early trading after releasing results.
Here’s how the corporate performed in the course of the period ended June 30, compared with Refinitiv consensus estimates
- Adjusted loss per share:Â 82 cents vs. 88 cents.
- Revenue:Â $19.75 billion vs. $18.45 billion
Boeing and predominant rival Airbus have each struggled to extend aircraft production within the wake of the Covid pandemic as some airlines face longer waits for brand spanking new jets, just as travel demand rebounds.
The corporate delivered 136 planes within the second quarter, up from 121 aircraft in the course of the same period last yr.
Boeing said Wednesday that it’s transitioning to higher production of its bestselling Max aircraft, at a pace of 38 jets a month, up from 31 a month — a plan it outlined earlier this yr. The corporate reiterated its 737 delivery forecast of between 400 and 450 planes this yr.
Boeing said it raised output of its 787 Dreamliner aircraft to a planned 4 per 30 days and stuck with a plan to provide five a month by the tip of the yr. It expects to deliver as many as 80 of the wide-body planes in 2023.
Boeing earlier this yr reported quality issues in each programs but has maintained delivery projections.
“With demand strong across our key markets, it is vital that we stay focused on execution and on driving stability in our factories and provide chain to make sure we meet our customer commitments,” CEO Dave Calhoun said in a message to employees Wednesday.
Boeing’s second-quarter revenue jumped 18% from a yr ago to $19.75 billion, but the corporate still reported a net lack of $149 million, or 25 cents per share. That compares with a profit of $160 million, or 32 cents per share, a yr ago, with essentially the most recent quarter’s results weighed down by charges in Boeing’s defense and space units.
On an adjusted basis, the corporate reported a lack of $390 million, or 82 cents per share.
Boeing’s defense, space and security unit reported a lack of $527 million for the quarter, compared with an operating profit of $71 million a yr ago.
The corporate said it took a $257 million loss on a launch delay of its crewed Starliner spacecraft, a $189 million loss because of higher production costs on its T-7A Red Hawk trainer jet and a $68 million loss on production delays on its MQ-25 program.
Correction: This story has been updated to correct that Boeing reported a $189 million loss because of higher production costs on its T-7A Red Hawk trainer jet. A previous version misstated the figure.
