Boeing recorded third quarter revenue of $18.1 billion, GAAP loss per share of ($2.70) and core loss per share (non-GAAP) of ($3.26). The company said that third quarter results were impacted by unfavourable defence performance and lower 737 deliveries. Boeing reported operating cash flow of $0.0 billion and free cash flow of ($0.3) billion (non-GAAP).
"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 Dave Calhoun, Boeing president and chief executive officer. "We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand. The important work we're doing to add rigor around our quality systems and build a culture of transparently bringing forward any issue, no matter the size, can bring short-term challenges – but it is how we set ourselves on the right course for our long-term future. Leading with safety, quality and transparency, we will continue to restore our operational and financial strength."
Operating cash flow was $0.0 billion in the quarter reflecting less favourable receipt timing, including the absence of a prior year tax refund.
Cash and investments in marketable securities totalled $13.4 billion, compared to $13.8 billion at the beginning of the quarter and Boeing has access to credit facilities of $10.0 billion, which remain undrawn.
Boeing’s total company backlog at quarter end was $469 billion. Boeing Commercial Airplanes third quarter revenue increased to $7.9 billion driven by higher 787 deliveries. Operating margin of (8.6) percent also reflects lower 737 deliveries as well as abnormal costs and period expenses, including research and development.
Boeing referred to the 737 program aft pressure bulkhead section issue on certain airplanes and its impact on near-term deliveries and production as necessary inspections and rework is ongoing. Boeing says that it now expects to deliver 375-400 airplanes this year.
On production, Boeing noted that suppliers are continuing with planned rate increases, and indicated that that it expects to complete the final assembly transition to 38 per month by year-end, with plans to increase to 50 per month in the 2025/2026 timeframe.
Boeing confirmed that the 787 program was now transitioning production to five per month and that plans to increase to 10 per month remain in the 2025/2026 timeframe. The program still expects to deliver 70-80 airplanes this year, said Boeing.
During the quarter, Commercial Airplanes booked 398 net orders, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines, and 39 787 airplanes for Saudi Arabian Airlines. Commercial Airplanes delivered 105 airplanes during the quarter and backlog included over 5,100 airplanes valued at $392 billion.