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Boeing Q3 results miss expectations with heavy losses in defense sector

NEW YORK
2022-10-27 01:35

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NEW YORK, Oct. 26 (Xinhua) -- U.S. aircraft manufacturer the Boeing Company posted weaker-than-expected operating results on Wednesday for the third quarter this year as heavy losses in the defense, space and security sector dragged down overall performance.

Boeing reported 3.3 billion U.S. dollars of net losses in Q3, up from 132 million dollars of losses in the same period of last year. Adjusted losses per share stood at 6.18 dollars in comparison with the estimate of adjusted profit of 0.07 dollars per share.

The defense, space and security sector alone recorded 2.798 billion dollars of losses from operations in Q3 with operating margin at negative 52.7 percent.

The unexpected losses mainly resulted from certain fixed-price development programs, driven by higher estimated manufacturing and supply chain costs, as well as technical challenges, according to a release by Boeing.

Meanwhile, Boeing reported 15.95 billion dollars of revenues in Q3, up 4 percent year on year but lower than market expectation of 17.76 billion dollars.

"We remain in a challenging environment and have more work ahead to drive stability, improve our performance and ensure we're consistently delivering on our commitments," said Dave Calhoun, president and chief executive officer of Boeing.

Boeing realized 3.19 billion dollars of operating cash flow in comparison with negative 262 million dollars of operating cash flow in Q3, 2021 and continued to expect positive free cash flow in 2022.

Boeing delivered 112 commercial airplanes in Q3, up from 85 in the same period of 2021, but less than market expectation of 120 for Q3.

Boeing's stock price dropped more than 3 percent during Wednesday's morning session.
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