Boeing’s €2.8bn defence loss drives another earnings miss

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Boeing’s €2.8bn defence loss drives another earnings miss
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Shares are down 27% so far this year as aerospace group delivers free cash flow well in excess of expectations via IrishTimesBiz

Shares are down 27% so far this year as aerospace group delivers free cash flow well in excess of expectationsA $2.8 billion loss by its defence unit pushed Boeing to another earnings miss. Photograph: T. Narayan/BloombergBoeing fell short of Wall Street’s estimates for third-quarter sales and profit, dragged down by $2.8 billion in defence losses from cost overruns on its aerial tanker, Air Force One and other military contracts.

That marked the fifth consecutive earnings miss as the Arlington, Virginia-based manufacturer has grappled with supplier strains, pandemic-related challenges and the financial toll from two 737 Max crashes. Boeing said Wednesday that it had an adjusted loss of $6.18 a share, while analysts predicted slightly positive earnings. Revenue was $16 billion, while analysts expected $17.7 billion on average.

Still, the aviation titan provided a tantalising glimpse of its financial potential, generating $2.9 billion in free cash flow as it resumed 787 Dreamliner deliveries after a lengthy halt.

 

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