Boeing Q3 net loss zooms to $6.2bn, 9-months loss at $8bn
Commercial deliveries for the third quarter increased 10% to 116 but revenue was down 6% at $7.4 billion.
Boeing reported a flat revenue of $18 billion for the third quarter of 2024 but net loss zoomed to $6.2 billion as the financials reflect impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defence programmes.
"It will take time to return Boeing to its former legacy but with the right focus and culture, we can be an iconic company and aerospace leader once again," says Kelly Ortberg, President and Chief Executive Officer, Boeing. "We will be focused on fundamentally changing the culture, stabilising the business and improving programme execution, while setting the foundation for the future of Boeing."
For the first nine months of 2024, Boeing reported a net loss of $8 billion on revenue of $51.3 billion, down eight percent.
Commercial deliveries for the third quarter increased 10 percent to 116 but revenue was down six percent at $7.4 billion. Loss from operations came in at $4 billion, says an official release. "Operating margin of (-54 percent) reflects previously announced pre-tax charges of $3 billion on the 777X and 767 programmes as well as the IAM work stoppage and higher period expenses, including research and development."
The 787 programme is currently producing at four per month, and the company plans to return to five per month by year end, the release added. "In the quarter, Commercial Airplanes booked 49 net orders with a backlog of over 5,400 airplanes valued at $428 billion."
Defence, Space & Security third quarter revenue of $5.5 billion and operating margin of (-43.1 percent) reflect the previously announced pre-tax charges of $2 billion. Results also reflect unfavourable performance on other programmes, the release added.
Global Services third quarter revenue of $4.9 billion and operating margin of 17 percent reflect higher commercial volume and mix.
Ortberg, in a prepared speech after the announcement of the results, said:
*The trust in our company has eroded.
*We’re saddled with too much debt; and
*We’ve had serious lapses in our performance across the company which have disappointed many of our customers.
Ortberg added that building a new future for Boeing is on the agenda of the leadership. "While we are somewhat consumed with the challenges of today, we need to be setting the foundation of the future for Boeing. Boeing is an airplane company and at the right time in the future we need to develop a new airplane. But we have a lot of work to do before then. We need to reset priorities and create a leaner, more focused organisation."
Earlier this week, Emirates announced a firm order for five more B777 freighters, bringing the total number of orders to be delivered to 14 B777Fs by the end of 2026.
Boeing's Commercial Market Outlook forecasts an additional 2,845 freighters will enter service over the next 20 years to support growing global trade and e-commerce demand. The 777 Freighter is Boeing's best-selling freighter of all time with 275 delivered to date. As the market leader in freighter airplanes, Boeing provides more than 90 percent of the worldwide dedicated freighter capacity, including new production and converted airplanes.
