Boeing loses $4.39 billion in first nine months of the year

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U.S. manufacturer Boeing announced Wednesday that in the first nine months of this year it lost $4.39 billion, compared to a loss of $126 million in the same period of 2021, which it blamed on losses in its Defense business.

Between January and September, the Chicago-based company had a turnover of 46.628 billion dollars, 2% less year-on-year.

“While our revenue was solid, our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business,” wrote the company’s chief executive, David Calhoun, in a statement.

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Calhoun said that the main reasons driving these losses were “higher estimated manufacturing and supply chain costs, as well as technical challenges”.

“We are fully focused on maturing these programs, mitigating risks and delivering for our customers and their important missions,” he added.

Boeing had already reported losses in excess of $1 billion on the contract for a new Air Force One, the plane used by the U.S. president, which was negotiated during Donald Trump’s presidency.

In the third quarter of 2022, the company posted a loss of $3.308 billion, $3.176 billion more than in July-September last year, although its revenues increased by 4% to $15.956 billion.

“We remain in a challenging environment and have more work ahead of us to ensure that we consistently deliver on our commitments and restore the strength of our company,” the top executive said.

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However, he stated that the company continues to “make significant progress” in its turnaround effort as it drives stability and focuses on performance.

On the positive side, he also wanted to highlight that free cash flow generated between July and September amounted to US$2.9 billion.

The aeronautics giant, which suffered a crisis as a result of technical problems in the design of the 737 MAX aircraft that caused two fatal accidents and, subsequently, due to defects in its 787 Dreamliner model, insisted on Wednesday that its production is “reducing when necessary” and that “they are working hard to ensure that the work is completed in sequence”.

In this regard, the company recalled that this quarter it began delivering 787 models after a “rigorous and thorough process”.

In the Defense, Space and Security sector, the company recorded a loss between July and September of 2,798 million dollars, compared to a profit of 436 million dollars in the same period last year.

The losses between July and September represent 75% of the losses that this area recorded in the first nine months of the year.

In the commercial aviation area, Boeing recorded a loss of $643 million in the third quarter, compared to the $693 million it lost in the same period of 2021, while it had a turnover of $6,263 million, up 40% year-on-year.

The global services area was the only one to record a profit, specifically 733 million dollars, 14 % more than in the same period of 2021, EFE reported.