(New York) Boeing announced on Wednesday a net loss greater than analysts’ expectations in the third quarter and revised downward the volume of deliveries of its flagship 737 aircraft for 2023 because of a problem already known on part of the fuselage.
“We continue to make progress and, despite the challenges that faced us in the third quarter, we remain on the path to our long-term recovery,” commented Dave Calhoun, the boss of the American aircraft manufacturer, in a message addressed to employees.
“That being said, we have more work to do,” he acknowledged, assuring that demand for Boeing’s products and services continues to be “strong.” But compliance, development and procurement issues hampered the group’s smooth running, he said.
Between July and September, Boeing raked in $18.10 billion in revenue, up 13% year-over-year, matching analyst consensus.
On the other hand, it posted a net loss of $1.64 billion in the quarter when analysts were expecting a loss of $1.50 billion.
Reported per share and excluding exceptional items – a benchmark for the markets – it stands at $3.26 when the consensus anticipated a loss of $3.18.
More bad news: the manufacturer now plans to deliver only between 375 and 400 copies of the 737 in the current financial year, instead of 400 to 450 previously planned.
Despite these announcements, Boeing shares jumped 2.89% in electronic trading before the opening of the New York Stock Exchange.
The group warned at the end of August of a slowdown in its production and delivery rate due to a problem concentrated on the rear watertight bulkhead of the device requiring the inspection of “hundreds of holes”.
It only delivered fifteen copies of the 737 MAX in September, the lowest level in more than two years.
Boeing nevertheless maintained on Wednesday its production rate objective of 38 copies of the 737 per month by the end of the year, and fifty monthly by 2025/2026.
“The estimate of the cost associated with carrying out the repair work is intangible and has been included in the third quarter results,” the group said.
It still plans to deliver 70 to 80 787 aircraft in 2023 and will now manufacture five per month instead of four, awaiting ten monthly in 20205/2026.
In its Defense, Space and Security branch, the manufacturer reports an operational charge of $482 million on the VC-25B program – that of the American presidential plane – due to higher manufacturing and personnel cost estimates and “the resolution of contracts with suppliers”.
Its operating profit was also affected by a $315 million loss on a satellite contract following changes made by the customer – unidentified – and “higher costs to strengthen the constellation and meet life cycle commitments “.