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Boeing Slips To Loss In Q3; Warns Of More Job Cuts

Boeing Co. (BA) reported that its third-quarter net loss attributable to shareholders was $449 million or $0.79 per share, compared to earnings of $1.17 billion or $2.05 per share in the same quarter last year.

The company said it expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, as the company resizes its operations to align with market realities.

The company reportedly expects to reduce its global workforce to about 130,000 employees by the end of 2021. Earlier this year, the company targeted a 10% cut to its staff. It has around 160,000 employees globally at the start of the year.

Core loss per share for the third-quarter was $1.39 compared to earnings of $1.45 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report a loss of $2.32 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined to $14.14 billion from $19.98 billion last year. Analysts expected revenues of $14.49 billion for the quarter.

Operating cash flow was negative $4.8 billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures.

Commercial Airplanes third-quarter revenue decreased 56 percent to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework.

Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification.

In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter.

Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.

Boeing said it made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency.

The Boeing 737 Max has been grounded worldwide since March 2019 following two crashes that killed 364 people.

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