Boeing Posts Huge $1.2B Loss For 1st Quarter Of 2022
Boeing said Wednesday that it lost $1.2 billion in the first quarter as it took large write-downs and lost money in both its civilian-airplane and defense businesses, David Koenig reported for the Associated Press (AP).
Photo Insert: Boeing said that it has submitted plans to resume deliveries of its 787 airliner and it increased production and deliveries of the 737 Max passenger jet during the quarter.
The loss was bigger than Wall Street had forecast, and the company’s quarterly revenue also fell short of expectations. Boeing burned through $3.2 billion in cash. “Messier quarter than any of us would have liked,” CEO David Calhoun acknowledged on CNBC.
Shares of Boeing Co., based in Chicago, fell 10% shortly after the opening bell Wednesday. Boeing took a $660 million charge for its program to build new presidential Air Force One jets, which it blamed on higher supplier costs, final technical requirements, and schedule delays.
It also took $367 million in charges on a military training jet.
Boeing offered some optimism for improvement, however, saying that it has submitted plans to resume deliveries of its 787 airliner and it increased production and deliveries of the 737 Max passenger jet during the quarter.
Calhoun said the company was on track to generate positive cash flow over the entire year “despite the pressures on our defense and commercial development programs.”
The quarterly report brought disappointing news for Boeing shareholders on several fronts. The company again pushed back the expected first delivery of a new version of its long-range, twin-aisle 777 passenger jet by at least a year until 2025.
The move was widely expected, as Boeing adapts to certification standards that have been tightened since regulators approved the Max, then were forced to ground the planes after two deadly crashes. The delay in expected approval for the 777-9 caused Boeing to forecast $1.5 billion in “abnormal” production costs.