From its stable second-quarter financials to its increase in production rates, Boeing is definitely on the up at present.
The manufacturer has turned a page over the course of this year, with orders and deliveries flying out of the Seattle-based company.
Without further ado, let’s get into it…
Boeing’s Financials Looking Strong for the Second Quarter…
Boeing’s financials for 2Q23 compared to 2Q22 don’t represent an improvement, but the solidified position it has produced this year so far is expected to turn this around quickly.
Net loss/earnings for the manufacturer was $149m, compared to +$160m in 2Q22, but the first half losses are considerably better than 1H22 at $574 million.
Revenue was up considerably from $16.6bn to $19.7bn.
Dave Calhoun, the Boeing President & CEO, had this to say about the results:
“We had a solid second quarter with improved deliveries and strong free cash flow generation. We are well positioned to meet the operational and financial goals we set for this year and for the long term”.
“While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments.”
“With demand strong, we’re steadily increasing our production rates across key programs and growing investments in our people, products, and technologies.”
Production Rates To Increase on the 737 MAX & 787 Family…
Within their financial results, Boeing mentioned that it would increase the production rate of the 737 MAX family from 31 units to 38 units per month.
It is understood this is expected to increase to reach 50 per month by 2025/26, with there to be a total of 450 MAX aircraft delivered by year-end.
As for the 787 program, production has already increased to four per month, with plans to ramp this up to five later on this year and to 10 by 2025/26.
This is how the second quarter and first half of 2023 are looking on the deliveries front so far:
- Deliveries in 2Q23: 136 – Up 12% compared to 2Q22.
- Deliveries in 1H23: 266 – Up 23% compared to 1H23.
“During the quarter, Commercial Airplanes booked 460 net orders, including 220 for Air India and 39 for Riyadh Air, and secured a commitment from Ryanair for up to 300 737 MAX airplanes. Commercial Airplanes delivered 136 airplanes during the quarter, and backlog included over 4,800 airplanes valued at $363 billion”, the manufacturer said in its results regarding orders.
It remains clear that Boeing is on the right track and that the financials could very well be the outlier until costs come under control.
The planemaker is delivering more planes, and revenues are rising, which is re-cementing its position in the market.
Off the back of a successful Paris Air Show and Farnborough Air Show last year, it will be interesting to see what the rest of 2023 will look like for the planemaker.
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