Boeing’s Q3 results weighed down by production challenges
The US planemaker’s results were hit by less profitable jetliner deliveries and higher costs amid ongoing production and supply-chain challenges.
Boeing's third-quarter results fell short of expectations due to production challenges and supply-chain issues within its commercial airplane division. The aerospace giant reported a larger loss than anticipated, despite strong margins across other sectors of the company. Boeing's shares dropped 2.5% in premarket trading as the news spread.
The company achieved significant milestones, including the certification of the 737 MAX 7 and securing a crucial US Navy contract for its sixth-generation fighter jets. However, revenue from Boeing Commercial Airplanes decreased slightly to $10.7 billion, while the operating loss amounted to $697 million. The company's CEO, Kelly Ortberg, acknowledged the need for improvement in various aspects, including delivery performance, cultural strengthening, and operational efficiency.
Boeing's defense division reported nearly $500 million in quarterly earnings, with an improved operating margin of 6.2%. The company's net debt stood at $25.2 billion at the end of the quarter, a slight decline from the previous quarter and a year ago.
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