Boeing core loss tops estimates as jet unit struggles

Boeing The Boeing Company ↘ 10.69% lost far less money in the third quarter than it did a year earlier. Even so, its adjusted loss came in wider than Wall Street expected, because the commercial jet business lost more ground while defense and services improved. The company reported a net loss of $116 million, or 26 cents per share, for the quarter ended Sept. 30. A year earlier it lost $5.34 billion, or $7.14 per share, a period that included a charge of nearly $5 billion on the 777X program, CNBC reported.cnbc.com

The core loss of 34 cents per share was worse than the 21-cent loss analysts expected, according to LSEG data cited by Reuters Thomson Reuters Corporation ↘ 4.64%. Revenue rose 4% to $24.2 billion and beat LSEG's $23.84 billion consensus. Boeing shares edged higher in early trading, Investor's Business Daily News Corp ↘ 2.12% reported.reuters.com+1

Jet unit drags

Commercial Airplanes posted a $697 million operating loss, an operating margin of minus 6.5%, on revenue of $10.7 billion. Boeing blamed a less favorable delivery mix, higher projected costs tied to future production-rate changes and higher estimated supply-chain costs, according to the company's earnings release. It delivered 161 commercial jets, one more than a year earlier. That total included 124 737s and 22 787s.investors.boeing.com

Boeing has struggled to raise 737 output from 42 to 47 jets a month, a rate it had hoped to reach over the summer. Chief Executive Kelly Ortberg said in September that the company had not been able to build wings fast enough, Reuters reported. Boeing said the 737 line is still moving toward a stable 47 per month, while 787 output is steady at eight per month and the 777X remains on track for first delivery in 2027, the release said.reuters.com+1

Defense and services offset

Defense, Space & Security revenue climbed 15% to $7.94 billion, CNBC reported. The segment earned $492 million, helped by a $252 million gain from selling HRL Laboratories. Global Services earned $1.02 billion with an 18.3% margin, according to Boeing.cnbc.com+1

Free cash flow was $464 million, up from $238 million a year earlier. Total backlog reached a record $745 billion and includes more than 6,300 commercial airplanes. That figure does not yet count the U.S. Navy's F/A-XX fighter award. Boeing ended the quarter with $45.9 billion in debt and $20.7 billion in cash and marketable securities.investors.boeing.com+1

Ortberg says "not done"

Ortberg pointed to FAA certification of the 737-7 and 737-10 and the Navy fighter win. "But we are not done," he said in the release. In a note to staff, he wrote, "Looking ahead, expectations are rising, and they should," CNBC reported. Executives are scheduled to take analysts' questions about the production ramp on a call at 10:30 a.m. ET on Tuesday.cnbc.com+1