Boeing Q3 misses estimates, 787 delays may cost $1bn
12:50, 27 October 2021
Boeing missed estimates for third-quarter earnings as the aerospace and defence company warned that delays to its 787 Dreamliner jet could top $1bn (£727m).
For the three months ended 30 September, Boeing’s net loss narrowed to $132m (£96m) from $466m in the same period a year earlier.
Total revenue in the third quarter was $15.3bn, up from $14.1bn in last year's third quarter, driven by higher commercial aeroplane and services volume.
Loss per share at 60 cents
The non-GAAP loss per share was reduced to 60 cents from a loss of $1.39 last year.
Analysts were expecting a loss per share of 20 cents on revenue of $16.37bn, according to FactSet.
"Commercial market demand continues to gain traction with broad-based vaccine distribution and border protocols beginning to open," Boeing chief executive David Calhoun said in a press release.
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Supply chain a ‘key driver’
"Going forward, supply chain capacity and global trade will be key drivers of our industry and the broader economy's recovery," Calhoun continued.
Boeing said low production rates and rework on its 787 jets are expected to result in approximately $1bn of abnormal costs of which $183m was recorded in the third quarter.
Boeing delayed deliveries of its 787 Dreamliner after the US aviation regulator found defects in aircraft, according to press reports.
Reduced 787 production rate
The company currently produces about two 787s per month and expects to continue this pace until deliveries resume, at which point it will return to a rate of five 787 aircraft per month over time.
The Chicago-headquartered company said its commercial aeroplane division's revenue rose 24% to $4.5bn. The division delivered 85 aircraft during the third quarter and had a backlog of over 4,100 aircraft was valued at $290bn.
Revenues at Boeing's global services division was up 14% to $4.2bn on higher commercial services volume.
Revenue at Boeing's defence, space and security division revenue fell 3% to $6.6bn as the company took a $185m earnings charge on the Commercial Crew programme which is to take astronauts to the International Space Station and will now schedule its second unmanned test flight next year.
Boeing shares were higher in US pre-market trading.
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