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

Updated: Nov 3, 2022

The American manufacturer Boeing announced this Wednesday that in the first nine months of this year it has lost 4,390 million dollars, compared to the losses of 126 million that it registered in the same period of 2021, and that it attributed to the losses in its Defense business. .

Between January and September, the Chicago-based company had a turnover of 46,628 million dollars, 2% less year-on-year.

“While our billing was strong, our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business,” CEO David Calhoun wrote in a statement.

Likewise, Calhoun specified that the main reasons that drove these losses were the "higher estimated manufacturing and supply chain costs, as well as technical challenges."

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

Boeing had already reported losses of more than 1,000 million dollars in the contract for a new Air Force One, the plane used by the president of the United States, and which was negotiated during the presidency of Donald Trump.

In the third quarter of 2022, the company had a loss of 3,308 million dollars, 3,176 million losses more than between July and September of last year, although its income increased 4%, to 15,956 million.

"We continue to be in a challenging environment and we have more work ahead of us to ensure we consistently deliver on our commitments and restore our company to strength," said the chief executive officer.

Nonetheless, 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 the free cash flow generated between July and September amounted to 2.9 billion dollars.

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, later, due to defects in its 787 Dreamliner model, insisted on Wednesday that its production be « is cutting back when necessary" and that "they are working hard to ensure work is completed in sequence."

In this sense, the company recalled that this quarter it began to deliver 787 models after a "rigorous and complete process."

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

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

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

The global services area was the only one that registered benefits, specifically 733 million dollars, 14% more than in the same period of 2021, reported EFE.

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