Boeing has skipped estimates as it struggles with delays in commercial and defense programs 2022-04-27 06:31:06

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Boeing’s 787 Dreamliner with AirEuropa livery passes the company’s final assembly facility in North Charleston, South Carolina, U.S., on Tuesday, December 6, 2016.

Travis Dove | Bloomberg | Getty Images

Boeing Reported wider adjusted loss and lower revenue Than analysts expected, the company faced higher costs on both commercial and defense aircraft and fees associated with the war in Ukraine.

The manufacturer said it will halt production of its 777X plane, which has not yet been approved by US regulators, until 2023, a plan that the company says will create $1.5 billion in extraordinary costs beginning in the second quarter.

Boeing also doesn’t expect deliveries of the plane to begin until 2025, more than a year later than it previously forecast. Its shares fell more than 4% in pre-market trading after the results were announced Wednesday morning.

Boeing has enjoyed a return in demand for its 737 Max, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays hampered other aircraft programs.

“With our first-quarter results, you’ll see that we still have more work to do; but I remain encouraged on our path, and we’re on track to generate positive cash flow for 2022,” Boeing CEO David Calhoun said in a note. . Wednesday employees. “We are a long-cycle company, and the success of our efforts will be measured over years and decades; not quarters.”

Boeing said it has submitted its certification plan to the Federal Aviation Administration, a step toward persuading regulators to resume deliveries of widebody aircraft. Deliveries to customers have been held for most of the past 18 months, and buyers love it American Airlines They said they have scaled back some international flights in response.

Here’s how Boeing performed in the first quarter compared to analyst estimates that Refinitiv stuck to:

  • Adjusted results: Basic loss of $2.75 per share vs. an expected loss of 27 cents per share.
  • Revenues: Expected: $13.99 billion, versus $16.02 billion.

The company said it increased production of the 737 Max to 31 months in the second quarter. It delivered 95 aircraft in the first quarter of 77 aircraft compared to the same period last year, but revenue in its commercial aircraft unit fell 3% from a year ago to $4.16 billion as 787 Dreamliner shipments continued to be grounded.

Boeing reported negative operating cash flow for the quarter, but it still expects cash flow to be positive in 2022.

Boeing shares are down 17% so far this year to Tuesday’s close, surpassing Standard & Poor’s 500by 12.4%.

Manufacturer executives will have a call with analysts at 10:30 a.m. ET.

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