• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Boeing’s woes deepen as aircraft manufacturer reports 90% rise in net loss in Q2

by July 31, 2024
written by July 31, 2024

Boeing reported a nearly 90% jump in its net loss for the quarter ending June 30, compared to the same period last year with lower commercial delivery volumes and losses in defense development programs dragging down its earnings in a big way. 

The company also announced Robert K Ortberg as the new president and CEO who will succeed Dave Calhoun when he steps down by the end of this year.

Ortberg, 64, is an aerospace industry veteran who last helmed Rockwell Collins as its CEO, and steered its integration with United Technologies and RTX until he retired from RTX in 2021.

Boeing’s net loss rises to $1.4 billion

The beleaguered aircraft manufacturer reported a net loss of $1.44 billion, or $2.33 per share, compared with a loss of $149 million, or 25 cents per share during Q2 last year. 

On an adjusted basis, the company reported a loss of $2.90 per share, coming in nearly $1 per share under analyst expectations, according to LSEG.

Revenue declined by about 15% to $16.87 billion against an estimated $17.23 billion. Debt came at $57.9 billion, up from $47.9 billion at the beginning of the quarter due to the issuance of new debt.

The company has been under heightened regulatory scrutiny and its reputation has taken a massive hit following the door-plug blowout incident in January this year.

The quarter in question also saw the company plead guilty to a criminal fraud conspiracy charge to resolve a US Justice Department investigation linked to two 737 MAX fatal crashes in 2018 and 2019. 

“Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future,” said Calhoun.

We are executing our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we’re taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency.

Fall in commercial airplane delivery drag down earnings

The quarter saw its delivery of commercial aeroplanes- its mainstay- decline by 32%, leading to a corresponding decline in revenues from the segment. It delivered 92 planes this quarter compared to 136 planes during the same quarter last year. 

However, it still has a delivery backlog of over 5,400 aeroplanes valued at $437 billion.

“During the quarter, the company submitted its comprehensive safety and quality plan to the Federal Aviation Administration (FAA). The 737 programs gradually increased production during the quarter and still plans to increase production to 38 per month by year-end,” Boeing said in a statement. 

It added that the 787 program maintains plans to return to 5 per month by year-end. 

In July, the company announced an agreement to acquire Spirit AeroSystems, and the 777X program began FAA certification flight testing after obtaining type inspection authorization.

Losses in the defense, space and security segment

Revenue for the defense, space and security segment stood at $6 billion.

The operating margin reflected a $1 billion loss on certain fixed-price development programs, including a $391 million loss on the KC-46A program largely driven by a slowdown of commercial production and supply chain constraints, the company said. 

During the quarter Boeing received the award of seven MH-139A helicopters from the US Air Force and delivered the first CH-47F Block II Chinook to the US Army.

Backlog in the segment was valued at $59 billion, of which 31% represents orders from customers outside the US, it said. 

The post Boeing’s woes deepen as aircraft manufacturer reports 90% rise in net loss in Q2 appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
CrowdStrike IT outage: Delta Air Lines says it faced losses of up to 500 M, will seek damages
next post
Boeing appoints aerospace veteran Kelly Ortberg as new CEO

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • White House says it didn’t create a banned word list, leaves language choices up to agencies

    March 18, 2025
  • Trump admin cracks down on groups tied to Iran targeting US citizens, sanctions Iranian-linked Swedish gang

    March 14, 2025
  • RFK Jr. wants to disrupt our powerful health care complex and it is terrified

    November 19, 2024
  • Top Republican warns families of ‘largest tax hike in history’ next year if Trump budget fails

    April 15, 2025
  • My friend Melania Trump is finally telling her story. Let’s take a moment to hear her out

    October 4, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,183)
  • Investing (634)
  • Stock (823)

Latest Posts

  • 4 governor’s races to watch on election night

    November 5, 2024
  • Epstein files debacle spurs new interest in contents of promised RFK, MLK assassination files

    February 28, 2025
  • Minority groups in Bangladesh detail violence, mistreatment following government’s collapse: ‘scapegoats’

    August 17, 2024

Recent Posts

  • RFK Jr. asks Americans to suggest policies for new Trump administration: ‘Transition team belongs to YOU’

    November 14, 2024
  • India launches strikes on terrorist camps in Pakistan

    May 6, 2025
  • EURUSD and GBPUSD: the pound drops to a weekly low

    August 30, 2024

Editor’s Pick

  • J.P. Morgan downgrades Mobileye Global ahead of Q2 earnings: Will the stock keep falling?

    July 31, 2024
  • Harris paid Oprah $1 million in failed bid to help campaign: report

    November 11, 2024
  • Musk officially steps down from DOGE after wrapping work streamlining government

    May 29, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock