LONDON – American planemaker Boeing reported $16bn worth of revenue in the third quarter of this year, as production continues to ramp up.
Boeing reported a GAAP loss per share of ($5.49), but the increases in revenue “reflect higher commercial volume and losses on fixed-price defense development programs”.
Dave Calhoun, the CEO & President of Boeing commented on the overall results of the manufacturer, which you can see below as well:
“We continue to make important strides in our turnaround and remain focused on our performance”.
“We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs.”
“We’re squarely focused on maturing these programs, mitigating risks, and delivering for our customers and their important missions.”
“We remain in a challenging environment and have more work ahead to drive stability, improve our performance and ensure we’re consistently delivering on our commitments.”
“Despite the challenges, I’m proud of our team and the progress we’ve made to strengthen our company.”
Higher Delivery Output…
The manufacturer has had a busier nine months this year than it did in 2021.
328 aircraft were delivered in 9M22, which is around 87 aircraft more than in the same period in 9M21.
As for the three months ending September 30, Boeing delivered 112 aircraft, which is 27 aircraft more than the same period last year as well.
Below, you can see the breakdown:
Commercial Airplane’s third-quarter revenue increased to $6.3 billion, driven by the resumption of 787 deliveries and higher 737 deliveries.
The operating margin of (10.3) percent also reflects lower abnormal costs as compared to the third quarter of 2021, partially offset by higher period expenses, including R&D expenses.
The company also resumed 787 deliveries in late August, following comprehensive reviews to ensure each airplane meets the company’s highest standards. The program is producing at a low rate with an expected gradual return to five per month over time.
Since late 2020, the 737 MAX fleet has completed nearly 1 million revenue flights. During the quarter, the company secured net orders for 227 aircraft, including 167 737 airplanes, 27 767 airplanes, 18 777 airplanes, and 15 787 airplanes.
Commercial Airplanes delivered 112 airplanes during the quarter, and the backlog included over 4,300 airplanes valued at $307 billion.
With Boeing taking financial hits on some programs, we are coming up to the stage where they will no longer have to do that soon, especially as production lines ramp up and recertification processes continue.
The American planemaker is probably wanting to get through the rest of this year so then it can restart 2023 with a fresh slate and begin delivering aircraft en masse safely.
But for now, all eyes are going to be on the manufacturer to see how well they fare in the last quarter of this year, as well as what 2023 will look like for the company too.