By Dan Catchpole
SEATTLE, Oct 27 (Reuters) – Boeing on Tuesday reported a third-quarter loss of 26 cents per share, as challenges in its commercial airplane division overshadowed larger margins in the rest of the company.
The planemaker continued its long turnaround during the quarter following years of crises and controversies which dented its reputation and left it with staggering debt. During the period, the two latest 737 MAX variants — the 737-7 and -10 — were certified by US regulators, the company won the US Navy’s sixth-generation F/A-XX fighter contract, and it recorded another quarter of free cash flow.
The planemaker reported an adjusted loss per share of 34 cents for the quarter. Analysts on average expected a loss of 21 cents, according to data compiled by LSEG.
Boeing Commercial Airplanes’ revenue dipped slightly to $10.7 billion with an operating loss of $697 million and a margin of -6.5%. In its earnings release, the company attributed the performance to less profitable jetliner deliveries and higher production costs, including from its supply chain.
The company has struggled to increase 737 output from 42 jets a month to 47 a month, which it hoped to hit during the summer. It had not been able to make wings fast enough, Boeing CEO Kelly Ortberg said at an industrial conference in September.
At Boeing’s defense division, higher deliveries, improved operational performance and a $252-million sale of a subsidiary contributed to nearly $500 million in quarterly earnings with an operating margin of 6.2%, up from 1.7% during the same period last year.
Boeing Global Services posted quarterly earnings of $1 billion and an operating margin of 18.3%.
Boeing ended the quarter with $25.2 billion in net debt, down slightly from $25.9 billion the previous quarter and $30.4 billion a year ago.
(Reporting by Dan Catchpole in Seattle; editing by Lincoln Feast.)
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