Boeing Co. (BA) - Get Report posted a narrowed-than-expected third quarter loss Wednesday, while unveiling further job cuts, as the planemaker continues to struggle to adapt to changes in the global aviation market brought by the coronavirus pandemic.
Boeing said its core share loss, on a non-GAAP basis, was pegged at $1.39. That's down from a profit of $1.45 over the same period last year but firmly ahead of the Street consensus forecast of a $2.47 per share loss. Group revenues, Boeing said, fell nearly 30% to $14.1 billion.
Commercial airplane revenues fell 56.4% to $3.6 billion, Boeing said, while defense, space and security revenues slumped to $6.8 billion.
Boeing also said it will increase its target for staff reductions, revealing another 11,000 job cuts that will take its overall headcount to under 130,000 by the end of next year.
"The global pandemic continued to add pressure to our business this quarter, and we're aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term," said CEO Dave Calhoun. "Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic."
"Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust," he added.
Boeing shares were marked 2.6% lower in early trading immediately following the earnings release at $151.21 each.
Boeing said earlier this month that its overall backlog for all aircraft models was pegged at 4,325 planes, taking into account three new 737 MAX cancellations and removing a further 48 due to specific accounting rules.
The workhorse 737 MAX has been grounded since the spring of last year following fatal crashes in Indonesia and Ethiopia and is currently undergoing rigorous testing by the U.S. Federal Aviation Administration.
Boeing made 11 deliveries in September, the company said, taking its year-to-date total to 98, compared to 302 last year and more than 560 in 2018.
The planemaker made no changes to its production forecasts, however, and still expects 737 MAX deliveries to resume before the end of the year.