Boeing reported a $149 million second-quarter loss Wednesday following delays and cost issues in its defense and space program, but shares rallied on increased commercial jet deliveries.
Chief Executive Dave Calhoun pointed to “steady progress” in the aerospace giant’s turnaround, as it increased production rates on both the 737 MAX and 787 Dreamliner, two popular commercial jets that have struggled with factory and supply chain issues in recent years.
A jump in plane deliveries boosted quarterly revenues to $19.8 billion, up 18 percent from the year-ago level and above analyst expectations.
Boeing notched a 12 percent increase in commercial plane deliveries. However, the program still experienced a quarterly loss due to “abnormal costs and period expenses, including research and development.”
The company’s defense, space and security business also experienced an operating loss, hit by delays in the Starliner spacecraft and increased costs connected to the T-7A jet trainer program.
Boeing reaffirmed its projections for 2023 free cash flow, a benchmark closely watched by investors.
Calhoun characterized the second quarter as “solid” and demand as “strong,” according to a press release.
“While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments,” he said.
Shares rose 3.6 percent to $221.80 in pre-market trading.
© 2023 AFP
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