Boeing (BA) reported a third quarter miss on both the top and bottom lines, and cut its delivery forecast for its 737 Max narrowbody jet due to ongoing production issues. The aerospace giant did reaffirm its cash flow guidance, which gave shares a boost.
For the quarter, Boeing reported top-line revenue of $18.10 billion, missing the Street’s estimate of $18.16 billion. The company reported an adjusted loss per share of $3.26, wider than the $2.95 loss expected. Boeing’s Q2 revenue figure was 13% higher than a year ago.
Boeing said results were impacted by “unfavorable defense performance and lower 737 deliveries.”
“We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term,” said Boeing CEO Dave Calhoun in the earnings release. “We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand
Boeing said it now expects to deliver 375-400 737 Max jets this year, down from the 400-450 deliveries it projected earlier. Boeing plans for 737 Max final assembly to rise to 38 planes per month by year end, with a goal to reach 50 planes per month by 2025/2026.
Boeing identified a supplier issue that impacted production of the 737 Max, though it is not an immediate safety issue, the company said in a statement.
Boeing however maintained its 2023 free cash flow forecast of $3 billion-$5 billion, and operating cash flow of $4.5 billion-$6.5 billion.
As for the 787 Dreamliner, Boeing said it is now transitioning to five per month from four, with a long-term goal of making 10 Dreamliners per month by 2025-2026. Boeing also reaffirmed that it plans to produce 70-80 787 jets this year.
Earlier this month, Boeing announced it delivered a total of 105 planes in Q3, including 70 of its 737 Max jets. Boeing also delivered 19 787 Dreamliner widebody jets to customers, bringing the 2023 total to 50 jets for the year.
In terms of gross orders, Boeing’s order book grew by 321 in the quarter. The planemaker added 150 737 Max jets from Ryanair, part of a larger potential 300 plane order worth up to $40 billion. The company also added a strong 50 plane order for commitment from United Airlines for the 787 Dreamliner. Saudia Airlines added 39 Dreamliner orders as well, part of the Kingdom of Saudia Arabia’s huge 78 Dreamliner order.
Boeing’s total backlog now stands at $469 billion, representing over 5,100 commercial jets, the company said.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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