Boeing (BA) earnings Q3 2022

A Boeing 737 MAX 10 aircraft stalls while taxiing on the flight line before its maiden flight at Renton Municipal Airport in Renton, Washington on June 18, 2021.

Stephen Brashear | Getty Pictures

boeing It reported a quarterly loss of $3.3 billion on Wednesday as problems in its defense unit hampered progress in the commercial aircraft business.

However, the manufacturer generated approximately $3 billion in free cash flow in the three months ended September. 30, up from $507 million exits a year ago. Boeing reiterated its forecast for positive free cash flow for the year.

Here is Boeing’s performance compared to analysts’ estimates provided by Refinitiv:

  • Adjusted loss per share: $6.18 vs. Expected earnings per share of 7 cents.
  • Revenues: $15.96 billion is expected to be $17.76 billion.

Shares of the company rose nearly 1% in pre-market trading.

Boeing reported $2.8 billion in losses in its defense unit on programs including the KC-46 tanker and Air Force One. The company had previously disclosed more than $1 billion in losses related to the replacement of two 747 jumbo jets to serve as Air Force One, a contract negotiated under former President Donald Trump.

“We are focused on maturing these programs, mitigating risks and fulfilling our customers and their important duties,” Boeing CEO David Calhoun said in an employee note Wednesday. Said.

As Boeing’s commercial unit recovered from the pandemic, the defense unit’s trouble escalated, supported by a recovery in air travel.

Revenues of Boeing’s commercial unit reached $6.26 billion, up 40% from a year ago. In the third quarter, the number of aircraft increased from 85 a year ago to 112. Deliveries of the 787 Dreamliner resumed in August after a hiatus for much of the previous two years to fix a number of manufacturing defects.

But Calhoun and other aviation executives said supply chain problems and labor shortages are hindering increases in production.

“We are realistic about the environment we are facing and we are taking comprehensive measures,” Calhoun wrote to staff on Wednesday. “We don’t push the system too fast in our production facilities. We slow down when necessary and work hard to get things done in order.”

Boeing has struggled to stabilize its business after a crisis that has grounded jets around the world, following two crashes of its 737 Max, one in Indonesia almost four years ago and the other in Ethiopia five months later.

The manufacturer is now seeking federal regulatory approval for new versions of this aircraft, the 737 Max 7 and 10, the smallest and largest in the family. But Boeing faces a year-end to do so without adding additional warning systems for pilots, according to new legislation passed in the wake of the crashes.

Boeing executives will discuss the results with analysts at a 10:30 ET call on Wednesday, where the company will face questions about potential production increases for commercial jets and the final timeline for certification of new Max versions.

This is breaking news. Check back for updates.

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