Boeing said the $2.8 billion in losses resulted from certain fixed-price development programs, higher manufacturing, supply chain costs, and technical challenges. [Courtesy iStock]
Key Takeaways:
Boeing reported a $3.3 billion loss in Q3, significantly missing earnings expectations, primarily due to a $2.8 billion charge within its defense unit caused by fixed-price programs, higher costs, and technical challenges.
Conversely, the commercial airplane segment showed strong recovery, increasing deliveries by 32% year-over-year, generating $3 billion in free cash flow, and securing 227 new aircraft orders, contributing to a substantial backlog.
CEO Dave Calhoun acknowledged the challenging environment and ongoing work needed for stability and improved performance, despite which the company's share price dropped 8% post-earnings.
Boeing (NYSE: BA) lost $3.3 billion this quarter, missing earnings expectations on multiple levels, company officials acknowledged in a third-quarter earnings call Wednesday.
In the call, Boeing announced that a $2.8 billion charge in its defense unit played a big factor in its $3.3 billion quarterly loss.
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Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.
