ARLINGTON, TEXAS- The leading aerospace company, Boeing [NYSE: BA], has announced the second quarter results for 2023, along with some good news related to the 737 and 787 production ramp-up.
In the second quarter, Boeing achieved $19.8 billion in revenue, with a GAAP loss per share of ($0.25) and a core loss per share (non-GAAP) of ($0.82).
Boeing Commercial Results
In the second quarter, Commercial Airplanes witnessed a rise in revenue to $8.8 billion, primarily attributed to an increase in 787 deliveries.
Exceptional costs and period expenses, such as research and development expenditures, influenced the (4.3) percent operating margin.
The 737 program focuses on transitioning production to 38 per month and aiming for 50 per month between 2025 and 2026. Despite these changes, the program remains on track to deliver 400-450 airplanes this year.
Commercial Airplanes successfully secured 460 net orders throughout the quarter, including notable orders from Air India (220) and Riyadh Air (39).
As for the 787 program, production has been raised to four airplanes per month, with plans to increase further to five per month in late 2023 and 10 per month by 2025/2026. The program is confident of delivering 70-80 airplanes by the end of the year.
Additionally, Ryanair (FR) committed to acquiring up to 300 737 MAX airplanes. In terms of deliveries, 136 airplanes were completed during the quarter, and the backlog remains substantial, with over 4,800 airplanes valued at $363 billion.
Read More: Is the Boeing 737 MAX Safe Now? | Exclusive – Aviation A2Z
Executive Insights
Dave Calhoun, Boeing’s President, and CEO, expressed satisfaction with the second-quarter performance.
He highlighted enhanced deliveries and robust free cash flow generation. He asserted the company’s readiness to achieve both short-term and long-term operational and financial objectives.
Calhoun acknowledged the ongoing efforts required for recovery. But emphasized the progress being made in stabilizing factories and the supply chain to fulfill customer commitments.
In response to high demand, Boeing is steadily ramping up production rates for key programs. Subsequently, making substantial investments in its workforce, products, and technologies.
Defense, Space & Security
In the second quarter, Defense, Space & Security achieved a revenue of $6.2 billion. The operating margin for the same period was (8.5) percent, mainly due to losses incurred on specific fixed-price development programs.
Additionally, ongoing labor instability and supply chain disruptions affected other programs, contributing to the margin decline.
The Commercial Crew program experienced a loss of $257 million, primarily resulting from the previously announced launch delay.
Similarly, the T-7A program recorded a loss of $189 million, mainly due to higher estimated costs on production contracts.
The MQ-25 program also faced a loss of $68 million, primarily because of schedule delays on the Engineering and Manufacturing Development contract.
During the quarter, Defense, Space & Security achieved significant milestones, including the successful U.S. Air Force’s first flight of the T-7A Red Hawk.
Construction commenced on the Advanced Coatings Center in St. Louis, and the company secured an award from the U.S. Army for 19 CH-47 Chinooks.
The backlog at Defense, Space & Security amounted to $58 billion, with approximately 31 percent representing orders from international customers.
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