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 reported a larger third-quarter loss than anticipated on Tuesday due to supply-chain issues and delays in production for its commercial airplanes, despite stronger margins in other areas of the company. The US planemaker's shares dropped 2.5% in early trading following the results. Boeing secured certification for the 737 MAX 7 and won a US Navy contract for a sixth-generation F/A-XX fighter, while generating free cash flow.
CEO Kelly Ortberg acknowledged the company's progress but emphasized the need to fulfill its backlog, enhance company culture, and improve daily operations. Adjusted loss for the quarter was 34 cents per share, surpassing the estimated 21 cents. Commercial Airplanes revenue dropped slightly to $10.7 billion, with an operating loss of $697 million and a 6.5% margin decrease.
Issues stemmed from less profitable jetliner deliveries and higher production costs, including supply chain problems. The defense division reported nearly $500 million in earnings and a 6.2% operating margin, up from 1.7% a year ago. Boeing Global Services earned $1 billion with an 18.3% operating margin. The company ended Q3 with $25.2 billion in net debt, slightly reduced from $25.9 billion and significantly lower than $30.4 billion a year ago.
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