US aerospace maker Boeing reported a stunning $3.3 billion loss for the third quarter on Wednesday as revenue missed expectations and suffered huge losses for government fixed-cost programs including new presidential jets. Air Force One.
The company blamed higher manufacturing and supply chain costs for driving losses on government programs.
CEO David Calhoun said Boeing remains in a “challenging environment” and has “more work ahead to drive stability.”
The shares rose 1% in morning trading, which analysts suggested was due to Boeing’s ability to generate $2.9 billion in free cash flow, a measure that excludes some non-cash items such as charges Boeing registered for government jobs.
Revenue in Boeing’s normally flat defense and space business plummeted 20%, and $2.8 billion was needed in charges on a military refueling tanker, Air Force Onea NASA program to build a spacecraft that can carry astronauts to the International Space Station, and other programs.
“We are not embarrassed about that. They are what they are,” Calhoun said on a call with analysts.
Boeing officials said they were working more closely with suppliers to reduce disruptions at Boeing factories.
Boeing previously booked billions of dollars in losses on those government programs, including about $1 billion in charges related to the construction of two new presidential jets, a deal it struck with then-President Donald Trump.
[Con información de The Associated Press]
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