Boeing posts quarterly loss as it increases Commercial production rates
By Bryan Corliss
July 26, 2023, (c) Leeham News — The Boeing Co. on Wednesday reported a quarterly loss of $99 million, due in part to spending increases that may be tied to production rate increases in its Commercial Airplanes division.
Boeing said that rates on its 737 line in Renton are increasing to 38 a month, the company said. The 787 program has increased rates to four a month, with a plan to increase that to five a month by the end of this year. Boeing said it expects to deliver between 400 and 450 737s this year, along with 70 to 80 787s.
Commercial revenues increased 41% during the quarter, to $8.8 billion. However, the unit took a loss of $383 million, which the company attributed to “abnormal costs and period expenses, including research and development.”
Boeing’s Commercial division delivered 138 aircraft during the quarter, which was up 12% from the same period last year. It announced a net of 460 firm orders for the quarter, including the 220-jet order from Air India and the Ryan Air deal for 150 737s, plus options on up to 150 737-10s.
Elsewhere, Boeing reported its Defense, Space and Security unit lost $527 million for the quarter, compared to a profit of $71 million in the second quarter last year. (We had looked at problems facing BDS earlier this week.)
The company said the Defense unit was impacted by “labor instability and supply chain disruption” involving some programs. Delays on the Commercial Crew space program, the T-7A Red Hawk trainer and MQ-25 drone added $514 million in losses.
Boeing also noted that it had paid down its total debt by $3.1 billion, leaving it with $53.2 billion still on its books.
This post will be updated.