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Boeing loses $149 million in Q2 as the plane maker is pushing ahead with production increases
Boeing is reporting a $149 million loss for the second quarter despite higher revenue, as the plane maker struggles with higher costs in both its airline and defense business.
Business
Boeing flipped to a $149 million loss in the second quarter despite higher revenue, as the plane maker struggled with higher costs in both its airline and defense business.
Boeing said it is beginning to increase production of its two most popular airline planes.
The company plans to raise production of the 737 Max from 31 to 38 planes a month to take advantage of demand for newer, more fuel-efficient planes. Boeing is also boosting output of the larger, two-aisle 787 Dreamliner from four to five per month by year end.
CEO David Calhoun said the company has “more work ahead” but is “making progress in our recovery,” including improving stability in its factories and among suppliers.
Boeing, headquartered in Arlington, Virginia, has been beset by supply-chain problems that continued during the second quarter, including a temporary delay in 737 deliveries because of fittings on the Max and regulators’ questions about Dreamliner inspections.
The company recorded charges of $257 million related to a delay in launches of its Starliner reusable space vehicle, $189 million for higher than expected production costs for a military training jet, and $68 million for delays in a defense refueling drone.
Boeing's loss compared with net income of $160 million a year earlier and, excluding unusual items, amounted to 82 cents per share. Analysts expected a loss of 89 cents per share, according to a FactSet survey.
Revenue rose 18% to $19.75 billion, more than the $18.59 billion that analysts expected. Sales were boosted by an increase in delivery of commercial planes to airlines and lessors.