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Boeing announced a loss per share of $4.79 on revenue of $11.81 billion, resulting in a net loss of $2.4 billion. Its operating cash burn was $5.3 billion in the quarter, primarily reflecting lower commercial deliveries and services volume due to Covid-19 and the grounding of its best-selling plane, the 737 Max, since March 2019 following two fatal crashes.
“The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” said Boeing President and Chief Executive Officer Dave Calhoun. “We are taking the right action to ensure we’re well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient – and so has Boeing.”
The company said its 737 program resumed early stages of production in May and it expects to gradually increase the production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand. The company took a 737 MAX customer consideration charge of $551 million in the quarter, compared with a $5.6 billion charge in the same period last year.
At 07:45 AM ET (1145 GMT), Boeing stock traded 1.8% higher premarket. Boeing shares are down 47% from the beginning of the year.
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