Boeing profits plummet as planemaker awaits approval to deliver Dreamliners


Boeing Co. said its quarterly profit fell as it awaited regulatory approval to resume deliveries of its 787 Dreamliner and loads continued to rise at its military and space unit.

The company on Wednesday reported earnings of $160 million, or 32 cents per share, for the three months to June 30, compared with $567 million, or $1, in the same period a year earlier.

The adjusted loss per share of 37 cents, which excludes pension costs, was lower than the consensus loss of 13 cents among analysts polled by FactSet. Sales in the quarter fell 2% to $16.7 billion, with analysts expecting $17.6 billion.

Boeing, based in Arlington, Va., took a $93 million charge on its Starliner space capsule during the quarter. Boeing successfully launched the Starliner in May, but incurred higher costs after a botched previous mission. It also took a $147 million charge on its MQ-25 resupply drone as costs rose to meet requirements set by its US Navy client.

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Boeing shares recently rose nearly 3% in premarket trading.

The company said it had positive operating cash flow in the second quarter. He reiterated the objective of generating a cash surplus for the whole year.

In this September 30, 2020 file photo, a Boeing 737 Max, piloted by Federal Aviation Administration (FAA) Chief Steve Dickson, prepares to land at Boeing Field after a test flight in Seattle. Boeing Co. reported more cancellations for its 737 Max (AP Photo/Elaine Thompson, File/AP Images)

“Even though we are navigating a challenging environment, we are making progress on key programs and are beginning to achieve important milestones,” chief executive David Calhoun said in a message to employees on Wednesday.

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Boeing 777

Boeing 777X (Boeing) (Boing)

Monthly production of the 737 MAX hit 31, down from 16 a year ago, as it faces supply chain challenges such as engine shortages that also affect rival Airbus SE, which will report quarterly results later Wednesday. Boeing said it stepped up to 737 deliveries in June.

BOEING STARLINER RETURNS FROM SPACE STATION

Boeing Logo

The Boeing logo appears above a trading post on the floor of the New York Stock Exchange before the opening bell, Monday, March 11, 2019. Boeing shares were expected to fall at the open on Wall Street after the crash on Sunday of a 737 Max 8 plane in E ((AP Photo/Richard Drew)/AP Newsroom)

Executives said they expected Boeing to receive regulatory approval soon to resume deliveries of its widebody 787 Dreamliner. A series of production issues have prevented the aircraft maker from getting this aircraft to customers for much of the past two years, leaving it with more than $25 billion worth of planes in inventory.

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