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Boeing announced Wednesday second-quarter results with a huge loss, as costs continued to accrue for the aerospace giant as its flagship 737 MAX remained stuck.
Boeing's shares were volatile early in the session, down 1.1% from the previous close of $ 373.07.
Boeing delivered 104 fewer aircraft to the company in the second quarter compared to last year, shipments of the company's mbad produced 737 Max aircraft being discontinued.
"It's a decisive moment for Boeing," said President and Chief Executive Officer Dennis Muilenburg in a press release. He added that the company remains focused on bringing the 737 Max back into service safely.
Results:
- Loss per share: $ 5.82
- Turnover: $ 15.8 billion
Boeing's earnings dropped nearly 275 percent from the same quarter last year, as the company earned $ 3.33 a share. In addition, Boeing's revenues this quarter represent a decrease of approximately 35% compared to the second quarter of 2018, which brought in $ 24.8 billion.
The loss reflects a charge of $ 4.9 billion due to the global stranding of its 737 Max aircraft after two fatal accidents killed 346 people. Boeing announced this charge last week, worth $ 8.74, and added in its report that the costs were "partially offset by an increase in the volume of defense and services."
The 737 Max has been down since mid-March. It remains to be seen how long it will take before Boeing can find a solution that satisfies the regulators.
Wall Street was expecting Boeing to report earnings of $ 1.87 per share and a $ 18.6 billion business figure, according to badysts surveyed by Refinitiv. But the estimates were not comparable because of the last minute charge.
The Boeing commercial aircraft business saw its operating margin fall by more than 100%, Boeing having halted deliveries of the 737 Max ordered large-scale aircraft. As a result, commercial aircraft deliveries dropped from 90 to 194 as compared to 194. Boeing said that the loss of profit resulting from the delays of the 737 Max was partially offset by the improvement in its aircraft's margins 787 Dreamliner.
The company's service activities remained strong, with revenues of both companies up 11% to $ 4.5 billion from $ 4.1 billion for the same period last year.
Boeing's defense unit saw its revenues rise by $ 6.6 billion in the second quarter, as the volume of its fighter jets, satellites and F / A-18 weapons programs increased . The defense company continued to win major contracts at the Pentagon this quarter, including an additional $ 194 million for the construction of the new generation MH-47G Chinook helicopter for the Special Operations Aviation Command. of the army and a $ 250 million contract for the joint direct attack ammunition. JDAM, bomb. The aerospace giant also continued the delivery of Air Force tanker KC-46.
– CNBC Leslie Josephs and Amanda Macias contributed to this report.
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