Welcome to Extreme Investor Network – your go-to source for the latest in business news and financial analysis. Today, we’ll be discussing Boeing’s recent quarterly results and the challenges the company is facing.
Boeing reported a wider-than-expected loss and weaker revenue in the second quarter, as both its commercial airplane and defense programs continued to struggle. The aerospace giant also announced the hiring of aerospace industry veteran Robert “Kelly” Ortberg as its new CEO in an effort to turn things around.
In the second quarter, Boeing reported a loss per share of $2.90, adjusted versus $1.97 per share expected, and revenue of $16.87 billion versus $17.23 billion expected. The company burned through $4.3 billion in cash during the quarter, and CFO Brian West indicated that the third quarter is expected to be another period of cash usage.
Despite the challenging quarter, Boeing’s CEO Dave Calhoun expressed optimism about the company’s future, highlighting progress in strengthening their quality management system. However, the company’s financial targets have been impacted by lower deliveries and production rates, particularly in its commercial airplanes unit.
Boeing is working to stabilize its operations following setbacks like the door plug blowout on a new 737 Max earlier this year, which led to increased regulatory scrutiny and delayed jet deliveries to airlines. The company plans to increase output of its Max planes to 38 a month, but analysts noted that production was still in the mid-20s per month last quarter.
In addition to its commercial airplanes unit, Boeing’s defense unit also faced challenges in the second quarter, reporting a decline in revenue and higher losses attributed to cost overruns and technical challenges. Despite these difficulties, Boeing’s shares were up more than 3% in midday trading.
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