Boeing Co. (BA) announced on Wednesday a significant widening of its net loss for the second quarter compared to the previous year. This was attributed to a 15 percent decline in revenue, driven by lower commercial delivery volumes and losses on fixed-price defense development programs. Core loss per share significantly underperformed analysts' expectations, and quarterly revenues also fell short.
For the second quarter, the Chicago-based aerospace and defense giant reported a net loss attributable to shareholders of $1.44 billion, or $2.33 per share, compared to $149 million, or $0.25 per share, in the same period last year.
The core loss for the quarter was $2.90 per share, compared to a core loss of $0.82 per share a year ago.
On average, 23 analysts polled by Thomson Reuters had anticipated the company would report a loss of $1.97 per share for the quarter, excluding special items.
Total revenues for the quarter dropped by 15 percent to $16.87 billion from $19.75 billion a year earlier, primarily due to lower commercial volumes. Analysts had expected revenues of $17.23 billion for the quarter.
By the end of the quarter, the total company backlog stood at $516 billion, which includes over 5,400 commercial airplanes.
Revenues from Commercial Airplanes fell 32 percent year-over-year to $6.00 billion, impacted by reduced deliveries.
Boeing also reported that it submitted a comprehensive safety and quality plan to the Federal Aviation Administration (FAA). The 737 program increased production gradually during the quarter and still aims to reach 38 units per month by the end of the year. The 787 program is set to return to a production rate of five units per month by year-end.
During this period, Commercial Airplanes delivered 92 airplanes, down from 136 airplanes in the same period last year. The backlog included over 5,400 airplanes valued at $437 billion.
Meanwhile, Defense, Space & Security revenue decreased by 2 percent, totaling $6.02 billion, down from $6.17 billion the previous year. The backlog in this segment was $59 billion, with 31 percent representing orders from customers outside the U.S.
Global Services revenue saw a 3 percent increase year-over-year, reaching $4.89 billion, driven mainly by higher commercial services volume and a favorable mix.
In a separate announcement, Boeing's Board of Directors elected Robert Ortberg as the new President and Chief Executive Officer, effective August 8, 2024. Ortberg will also join Boeing's Board of Directors.
Ortberg will succeed Dave Calhoun, who announced earlier this year his intention to retire. Calhoun has served as President and CEO since January 2020 and has been a member of Boeing's Board of Directors since 2009.
