On Wednesday, Boeing announced a second-quarter loss of $149 million, attributing the setback to delays and cost issues in its defense and space program. Despite this, the company’s shares rallied as it saw a surge in commercial jet deliveries. Chief Executive Dave Calhoun highlighted “steady progress” in Boeing’s turnaround efforts, particularly in increasing production rates for the 737 MAX and 787 Dreamliner, two popular commercial jets that faced challenges with factory and supply chain issues in recent years.
The boost in plane deliveries contributed to quarterly revenues of $19.8 billion, reflecting an 18 percent increase from the previous year and surpassing analyst expectations. Notably, Boeing achieved a 12 percent rise in commercial plane deliveries. However, the defense program’s quarterly loss was influenced by “abnormal costs and period expenses, including research and development.”
Despite the setback, Boeing reaffirmed its projections for 2023 free cash flow, a critical benchmark closely monitored by investors. Calhoun emphasized that the second quarter was marked by solid performance and strong demand in the industry. He expressed optimism about the company’s recovery, noting progress in stabilizing factories and the supply chain to fulfill customer commitments.
As Boeing continues its efforts to address challenges in its defense program while capitalizing on increased commercial jet deliveries, investors remain attentive to the company’s recovery and turnaround strategies. The positive outlook provided by strong demand and production rate improvements gives hope for Boeing’s future performance, but the company acknowledges that there is still work ahead to overcome ongoing obstacles.
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