Boeing just had a brutal quarter
Boeing (BA) lost another $6 billion in the third quarter, as the beleaguered aircraft maker takes hit after hit from delivery delays and worker stoppages.
The Virginia-based manufacturer reported an adjusted loss per share of $9.97, totaling almost $6.2 in losses for the three months ended Sept. 30, Boeing said Wednesday. The company said the results reflect impacts of the strike by the International Association of Machinists and Aerospace Workers (IAM) and charges on commercial and defense programs.
“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” said Kelly Ortberg, Boeing’s new chief executive officer. “Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing.”
Boeing stock fell 1% in pre-market trading Wednesday.
The company has faced a litany of setbacks this year, starting when a door plug blew off an Alaska Airlines flight in January. Since then, it has faced scrutiny both from regulators and the court of public opinion over a growing pile of safety issues.
These problems have resulted in delayed deliveries — and unhappy airlines. For the quarter, Boeing’s commercial division received 49 orders and delivered 116 airplanes, with backlog of over 5,400 airplanes valued at $428 billion, the company said.
Boeing said its 787 program is currently producing 4 aircraft per month, and still plans to return to an output of 5 per month by year end.
The company reported $2.38 billion in operating losses from its defense arm and $4 billion from its commercial airplanes in the third quarter — higher than the estimated charges it had announced earlier this month.
To add to its woes, Boeing is facing a massive strike from its machinists, which some estimate is draining $50 million a day from the aircraft manufacturer’s coffers. After furloughing workers early on, Boeing has since kicked the striking workers off company health care plans and announced plans to lay off 10% of its workforce.
Striking workers are expected to vote on a new contract that could put an end to the work stoppage on Wednesday.