Boeing jetliner production challenges weigh on third-quarter results

Boeing reported a larger-than-anticipated loss in the third quarter, primarily due to supply-chain issues and production delays in its commercial airplane division. The US aircraft manufacturer's shares dropped 2.5% in premarket trading despite stronger margins elsewhere. Boeing achieved certification for the 737 MAX 7, secured the US Navy's sixth-generation F/A-XX contract, and generated free cash flow for the third consecutive quarter.

However, commercial airplane revenue contracted and operating loss widened to $697 million, with a 6.5% margin drop compared to last year's 48.3% decline. CEO Kelly Ortberg acknowledged the backlog, need to improve the company culture, and daily working conditions in a memo to employees. Boeing's defense division reported nearly $500 million in earnings with a 6.2% operating margin, up from 1.7% a year earlier, while Global Services earned $1 billion with an 18.3% operating margin.

The company finished the quarter with $25.2 billion in net debt, a slight decrease from the previous quarter and year-over-year.