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Boeing Stock Slides After a Wider-Than-Expected Q3 Loss, 787 Dreamliner Charges

Boeing said charges related to its delayed 787 Dreamliner could reach $1 billion after a wider-than-expected Q3 loss and revenue miss.

Boeing  (BA) - Get Boeing Company Report posted a wider-than-expected third quarter loss Wednesday, as well as softer revenues, as the planemaker cautioned that charges linked to its delayed 787 Dreamliner could reach $1 billion. 

Boeing said its adjusted core loss for the three months ending in September was pegged at 60 cents per share, up from a loss of $1.39 per share over the same period last year and well away from the Street consensus forecast of a 20 cent loss. Group revenues, Boeing said, rose 8.2% from last year to $15.3 billion, well shy of analysts' forecasts of a $16.3 billion tally.

Boeing said earlier this year it would rim production of its 787 Dreamliner following the discovery of a structural flaws in the troubled twin-aisle aircraft, and booked $183 million in third quarter charges as a result. That figure could rise to $1 billion, Boeing said. The group also booked a further $185 million charge linked to the delayed Starliner astronaut capsule.

"We are driving stability across our operations, investing in our future and positioning our teams to deliver for our customers as the market recovers," said CEO David Calhoun. "Commercial market demand continues to gain traction with broad-based vaccine distribution and border protocols beginning to open. Going forward, supply chain capacity and global trade will be key drivers of our industry and the broader economy's recovery."

"Our portfolio across commercial, defense, space and services is well positioned, and we're focused on improving performance, while advancing technologies and digital manufacturing capabilities to drive our next generation of products and a sustainable future," he added.  

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Boeing shares on Wednesday closed 1.5% lower at $206.61.

Late last month, said a 737 MAX test in China "went off without a hitch" in August, potentially providing authorities with enough data to return the aircraft to service in the world's biggest aviation market.

Boeing said Wednesday it's producing the Max at a rate of 19 per month, a figure it says will rise to 31 per month by early 2022. Its 787 production rate is now 2 aircraft per month, Boeing said.

Boeing China President Sherry Carbary said she hopes China's Civil Aviation Administration (CAAC), which grounded the jet in 2019 following fatal crashes in Indonesia and Ethiopia, would make that decision by the end of the year.

In its most recent market outlook report, Boeing said said China, the world's second-largest economy but the largest aircraft market, would likely need 8,700 new airplanes over the next two decades, a figure that translates to overall sales of around $1.47 trillion. 

A further $1.8 trillion will likely be needed to service both its existing and future fleet additions over the next 20 years, Boeing said.