Boeing recently announced their second-quarter results, and it didn’t meet analysts’ expectations. The aerospace giant reported a larger quarterly loss and weaker revenue compared to what was predicted. This comes as both its commercial airplane and defense programs continue to face challenges. The loss per share was reported at $2.90 per share adjusted, falling short of the estimated $1.97 per share adjusted. Additionally, revenue for the quarter was $16.87 billion, lower than the anticipated $17.23 billion.
In an effort to reinvigorate the company, Boeing has appointed Robert “Kelly” Ortberg, a more-than-three-decade aerospace industry veteran, as its new CEO. This move is part of Boeing’s strategy to regain its footing and address the issues faced by its commercial airplane and defense programs. CEO Dave Calhoun expressed optimism about the future, highlighting the progress the company is making in strengthening its quality management system.
Despite efforts to stabilize operations, Boeing has been dealing with financial setbacks and operational challenges. The company reported a net loss of $1.44 billion for the second quarter, with an adjusted loss of $2.90 per share. This was significantly below analyst expectations and marks a decline from the same period last year. Revenue for the quarter was down by 15% at $16.87 billion, reflecting the impact of lower production and delivery rates.
Boeing’s commercial airplanes unit experienced a 32% year-over-year drop in revenue, totaling $6 billion for the quarter. Low deliveries and production rates have contributed to the unit’s struggles, delaying the company’s financial targets. The CFO warned that Boeing would continue to burn cash in the second quarter, largely due to lower than expected production and delivery rates. This resulted in negative free cash flow of $4.3 billion for the quarter.
Boeing’s defense unit also faced challenges in the second quarter, reporting a 2% decline in revenue amounting to $6.02 billion. The unit experienced a loss of $913 million, nearly double the loss from the same quarter in the previous year. These losses were attributed to higher estimated engineering and manufacturing costs, as well as technical challenges faced by the unit.
Boeing’s second-quarter results reflect the ongoing struggles the company is facing in both its commercial airplane and defense programs. The appointment of a new CEO and efforts to strengthen its quality management system indicate a commitment to overcoming these challenges. However, it will require a concerted effort to address the financial setbacks and operational issues that have impacted Boeing’s performance.