Boeing's third-quarter loss narrowed to $116 million as defence and services offset a $697 million commercial aeroplane loss.
Boeing reported a smaller third-quarter loss on Tuesday, as stronger defence and services results partly offset another loss in its commercial aeroplane business, where production problems and delivery mix continued to weigh on margins.
The company recorded revenue of $24.2 billion, up about 4% from $23.27 billion a year earlier, with a GAAP loss of $0.26 per share and a core loss of $0.34 per share, wider than the $0.21 loss analysts had expected on average, according to LSEG data cited by Reuters. The net loss narrowed to $116 million from $5.34 billion a year earlier, when a charge linked to the delayed 777X programme depressed the result.
Commercial Airplanes revenue slipped to $10.7 billion and the division lost $697 million, a margin of minus 6.5%, which Boeing attributed to less profitable deliveries and higher production costs, including supply-chain costs. Defence, Space and Security revenue rose 15% to $7.94 billion with earnings of about $492 million, helped by higher deliveries and a $252 million gain from selling a subsidiary, while Global Services earned $1.02 billion on revenue of $5.57 billion. Operating cash flow was $1.50 billion and free cash flow $464 million, and the total backlog reached a record $745 billion.
Boeing's own release states the revenue, per-share and backlog figures, and Reuters reporting of the same release confirms the commercial division's $697 million loss and its attribution to delivery mix and supply-chain costs. The release also records certification of the 737-7 during the quarter and of the 737-10 in October, and selection by the US Navy for its F/A-XX fighter programme, although that order is not included in backlog because the selection process is incomplete.
Chief executive Kelly Ortberg told employees that expectations were rising and that the company had a stronger foundation than a year earlier but still had more work to do on delivery, culture and execution. The test now is production: Boeing has struggled to lift 737 output from 42 jets a month to 47, with Ortberg previously pointing to wing production as a constraint. Whether the commercial division can close that gap without further cost increases will decide whether the recovery in defence and services is enough to return the group to sustained profit.