Boeing misstates estimates as it grapples with delays in trade defense programs

A Boeing Co. Dreamliner 787 aircraft in AirEuropa livery passes in front of the company’s final assembly facility in North Charleston, South Carolina, United States, on Tuesday, December 12. 6, 2016.

Travis Colomba | Bloomberg | Getty Images

Boeing reported a larger adjusted loss and lower revenues than analysts expected as the company faced higher costs for both commercial and defense aircraft.

The manufacturer said it will suspend production of its 777X aircraft, which has not yet been certified by US regulators, until 2023. Boeing also does not expect deliveries of the aircraft to begin until 2025, more than a year after that. than previously provided.

Boeing shares fell more than 2% in pre-market trading after reporting results Wednesday morning.

Here’s how Boeing performed in the first quarter compared to analyst estimates compiled by Refinitiv:

  • Correct Results: A core loss of $ 2.75 per share versus an expected loss of 27 cents per share.
  • Income: $ 13.99 billion versus an expected $ 16.02 billion.

Boeing has enjoyed a resurgence in demand for its 737 Max aircraft, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays have hampered other aircraft programs.

“Through the first quarter results, you will see that we still have a lot of work to do; but I remain encouraged by our trajectory and we are on track to generate positive cash flow for 2022,” Boeing CEO David said in a statement. Calhoun Wednesday to employees. “We are a long-cycle company and the success of our efforts will be measured in years and decades, not quarters.”

The company said it will increase 737 Max production to 31 per month in the second quarter. It delivered 95 aircraft in the first quarter compared to 77 in the same period last year.

Boeing reported negative operating cash flow for the quarter, but still expects positive cash flow in 2022.

Boeing shares have fallen 17% so far this year through the close on Tuesday, topping the S&P 500The decline of 12.4%.

The manufacturer executives will hold a call with analysts at 10:30 am ET.

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