Boeing Q3 Loss Sharply Narrows, But Misses Estimates

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Boeing Co. (BA) on Wednesday reported a loss for the first-quarter that sharply narrowed from last year, reflecting an 8 percent increase in revenues on higher commercial airplanes and services volumes. However, core loss per share and quarterly revenues came in below analysts' expectations.

Looking ahead, the airplane maker said supply chain capacity and global trade will be key drivers of the industry and the broader economy's recovery.

The Chicago-based aerospace and defense giant reported that its third-quarter net loss attributable to shareholders narrowed to $132 million or $0.19 per share from $466 million or $0.79 per share in the prior-year quarter.

Core loss for the quarter was $0.60 per share, compared to core loss of $1.39 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 8 percent to $15.28 billion from $14.14 billion in the same quarter last year, primarily driven by higher commercial airplanes and services volume. Analysts expected revenues of $16.04 billion for the quarter.

Total company backlog at quarter-end was $367 billion.

Commercial Airplanes revenues increased 24 percent year-over-year to $4.46 billion, driven by higher 737 deliveries, partially offset by lower 787 deliveries. Boeing said it is continuing to make progress on the global safe return to service of the 737 MAX.

During the quarter, Commercial Airplanes delivered 85 airplanes and backlog included over 4,100 airplanes valued at $290 billion. It also secured orders for 70 737 MAX, 24 freighter, and 12 787 airplanes.

The 737 program is currently producing at a rate of 19 per month and continues to progress towards a production rate of 31 per month in early 2022, with the company evaluating the timing for further gradual rate increases.

The company said it continues to focus 787 production resources on conducting inspections and rework and continues to engage in detailed discussions with the FAA regarding required actions for resuming delivery.

The low production rates and rework are expected to result in approximately $1 billion of abnormal costs, of which $183 million was recorded in the quarter, the company noted.

Meanwhile, Defense, Space & Security revenue decreased 3 percent to $6.62 billion from $6.85 billion in the previous year.

Global Services revenue increased 14 percent year-over-year to $4.22 billion, primarily driven by higher commercial services volume.

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