Boeing reports ‘first’ loss in nearly 7 years
Boeing, absorbing billions in writedowns related to two of its newest commercial jets and a military fuel tanker, reported its first quarterly loss in nearly seven years. Yet revenue for the Chicago aerospace giant rose 1 percent to $24.8 billion, and company shares rose steadily before the opening bell yesterday. Charges totaling $3 billion before taxes, led to Boeing’s first down quarter since the third quarter of 2009, when it lost $1.6 billion.
Boeing also lowered its full-year earnings to the range of $6.10 and $6.30 per share, from $8.15 and $8.35. The revenue outlook remains the same at $93 billion to $95 billion. The report of a quarterly loss comes days after one of Boeing’s key suppliers, Rockwell Collins, publicly called out the company for being behind on $30 million to $40 million in bills for various electronic and cockpit equipment. “Boeing is delinquent and Boeing has contributed to some of our underperformance here this quarter in cash flow, which is disappointing, but we’re working that with them,” Rockwell Collins CEO Kelly Ortberg said Monday when the company posted earnings.
The Boeing Co. reported losses of $234 million. The adjusted per-share loss was 44 cents, which was better than Wall Street had expected. Analysts surveyed by Zacks Investment Research had projected a loss of 88 cents per share. Boeing had already warned analysts of the heavy charges for the quarter, giving them time to adjust their estimates. The charges this quarter include a $1.2 billion write-down, before taxes, on its 747-8. Boeing attributed the loss to weakness in the air cargo market, saying that the overall number of freighter jets produced will be lower than originally estimated.
The company will continue to manufacture one of the giant jets every two months but no longer has plans to double the production rate to one per month in 2019. Boeing also decided against spending money to refurbish and sell its two remaining 787 Dreamliner test aircraft. — AP