Boeing Q2 Loss Sharply Widens, Misses Estimates

(RTTNews) - Boeing Co. (BA) reported on Wednesday a net loss for the second quarter that sharply widened from last year, reflecting a 15 percent revenue decline amid lower commercial delivery volumes, and losses on fixed-price defense development programs. Core loss per share came in well below analysts' expectations and quarterly revenues also missed it.

For the second quarter, the Chicago-based aerospace and defense giant reported that net loss attributable to shareholders sharply widened to $1.44 billion or $2.33 per share from $149 million or $0.25 per share in the prior-year quarter.

Core loss for the quarter was $2.90 per share, compared to a core loss of $0.82 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report a loss of $1.97 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined 15 percent to $16.87 billion from $19.75 billion in the same quarter last year, primarily driven by lower commercial volume. Analysts expected revenues of $17.23 billion for the quarter.

Total company backlog at quarter-end was $516 billion, including over 5,400 commercial airplanes.

Commercial Airplanes revenues decreased 32 percent year-over-year to $6.00 billion, hurt by lower deliveries.

Boeing said it submitted its comprehensive safety and quality plan to the Federal Aviation Administration (FAA). The 737 program gradually increased production during the quarter and still plans to increase production to 38 per month by year end. The 787 program plans to return to a production rate of five per month by year end.

During the quarter, Commercial Airplanes delivered 92 airplanes, down 32 percent from last year's 136 airplanes. The backlog included over 5,400 airplanes valued at $437 billion.

Defense, Space & Security revenue decreased 2 percent to $6.02 billion from $6.17 billion in the previous year. Backlog at Defense, Space & Security was $59 billion, of which 31 percent represents orders from customers outside the U.S.

Global Services revenue increased 3 percent year-over-year to $4.89 billion, primarily driven by higher commercial services volume and favorable mix.

Separately, Boeing announced that its Board of Directors elected Robert Ortberg as the new president and chief executive officer, effective August 8, 2024. Ortberg will also serve on Boeing's Board of Directors.

Ortberg succeeds Dave Calhoun, who earlier this year announced his intention to retire from the company, having served as president and CEO since January 2020, and as a member of Boeing's Board of Directors since 2009.

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