Latest news with #737MAX
Straits Times
16 hours ago
- Business
- Straits Times
Boeing's quarterly loss shrinks as jet deliveries rebound, but shares drop
Sign up now: Get ST's newsletters delivered to your inbox Boeing still reported a second-quarter loss of US$612 million, but that was a big improvement over the US$1.4 billion loss a year ago. SEATTLE - Boeing's quarterly loss more than halved and was much smaller than analysts expected as the US planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production in 2024. The results highlighted Boeing's efforts to cautiously increase monthly output in 2025, following years of quality issues and production delays on its flagship 737 MAX. However, Boeing shares closed down 4.4 per cent on July 29, after its results announcement. The drop was 'surprising' and unwarranted based on the quarterly results, Barclays Capital aerospace analyst David Strauss said in a note to investors. The company's financial improvements were tempered by its announcement that certification of the 737 MAX 7 and 10 models will not happen until 2026, another setback for those programmes. The company previously said it expected to finish certification by the end of this year. The company is still developing solutions to address problems with the 737 MAX models' engine de-icing systems that are stalling certification, which is proving a 'little more tricky' than anticipated, Boeing chief executive officer Kelly Ortberg told CNBC. During the interview, he praised US President Donald Trump's aggressive use of tariffs to hammer out trade deals. 'I like the way this tariff situation is playing out,' Mr Ortberg told CNBC. 'It's good for our business, is good for aerospace,' and will create jobs in the United States. The United States and European Union agreed to exempt aircraft and aviation parts from tariffs. However, raw materials such as steel and aluminum remain subject to steep duties. Boeing still reported a loss of US$612 million (S$788 million) in the quarter, but that was a substantial improvement over the US$1.4 billion loss during the same period a year ago. Mr Ortberg joined the company in August 2024 as it sought to recover from its latest crisis, caused by a poorly installed panel that blew off a Boeing 737 Max jet during a flight early last year. No one was killed, but the episode resurfaced widespread concerns about Boeing's planes five years after two fatal crashes involving the Max. The new CEO ordered changes aimed at improving quality and safety. And the company has steadily increased production and deliveries of its passenger planes since. Boeing delivered 280 commercial jets in the first half of this year, the most in the first six months of any year since 2018, before the fatal Max crashes. Boeing has also increased production of the Max to 38 planes per month, a ceiling the Federal Aviation Administration imposed after the panel blowout. Mr Ortberg said the company was planning to ask the FAA for permission to increase production to 42 Max jets a month when internal quality metrics indicated that it was safe to do so. The company has also increased production of the 787 Dreamliner, a larger, twin-aisle plane, to seven jets per month. New orders for the company's planes have improved, too, with more than 420 commercial jets ordered in the second quarter. That was its best quarterly sales since late 2023. Those orders may have been boosted by trade deals struck by Mr Trump, several of which included commitments from other countries to buy Boeing planes, though experts said that many such orders might have been placed anyway. REUTERS, NYTIMES
Gulf Today
a day ago
- Business
- Gulf Today
Boeing's quarterly loss shrinks as jet deliveries rebound, shares drop
Boeing's quarterly loss more than halved and was much smaller than analysts expected as the US planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. The results highlighted Boeing's efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX. Increased deliveries mark a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, increasing the urgency of accelerating output to restore financial stability. Boeing shares dropped 3.7% in midday trading. The company's financial improvements were tempered by its announcement that certification of the new 777-9 and 737 MAX 7 and 10 models will not happen until 2026, another setback for those programs. The company previously said it expected to finish certification by the end of this year. The company is still developing solutions to address problems with the 737 MAX models' engine de-icing systems that are stalling certification, which is proving a "little more tricky" than anticipated, Boeing CEO Kelly Ortberg told CNBC. During the interview, he praised President Donald Trump's aggressive use of tariffs to hammer out trade deals. "I like the way this tariff situation is playing out," Ortberg told CNBC. "It's good for our business, is good for aerospace," and will create jobs in the United States. The US and EU agreed to exempt aircraft and aviation parts from tariffs. However, raw materials such as steel and aluminium remain subject to steep duties. The planemaker posted an adjusted core loss per share of $1.24 for the quarter through June, compared with a $2.90 loss a year ago. Analysts had expected a loss of $1.48 per share. The planemaker's free cash flow usage, a key metric for Wall Street, was better than expected, signaling an improving cash position. "As we continue to execute our Safety & Quality Plan, there's more stability in our operations," Ortberg said in a letter to Boeing employees. Boeing's commercial plane division will lose money through the year, but free cash flow looks to be positive by year-end, Boeing Chief Financial Officer Brian West said during a call with analysts. In May, the company produced 38 737s and production has been stable since then, according to Boeing. The company expects to shut down its 737 shadow factory in Moses Lake, Washington, which supports its main production lines, by the end of the year, West said. The US Federal Aviation Administration capped the production of Boeing's best-selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024. "We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added. The agency will review Boeing's supply chain before allowing a rate increase, FAA Administrator Bryan Bedford said last week. He called Boeing's efforts to improve production quality "real' but "embryonic.' Boeing delivered 206 737 MAX jets through the first half of the year, compared to 135 a year earlier. Across all commercial jet programs, it delivered 285 airliners through June, compared to 175 during the same period in 2024. Wall Street closely tracks aircraft deliveries because planemakers collect much of their payment when they hand over jets to customers. Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven. The company expects to deliver more than a dozen 787s that have been delayed due to supply-chain problems, West said. Through the first half of the year, the planemaker booked 668 orders, or 625 net orders after cancellations and conversions. In May, Boeing's defense, space, and security division resumed deliveries of its KC-46 aerial refueling tanker to the US Air Force, after finding cracks in at least two new aircraft this year. The company started ground testing of the MQ-25, a refueling drone ordered by the US Navy, during the quarter. Members of the machinists union at the defense division overwhelmingly rejected a four-year contract offer on Sunday. The union represents 3,200 Boeing employees, mostly in the St. Louis area. If negotiations stall, union members could approve a strike as soon as Sunday. A strike would be much smaller than the one Boeing endured last fall, when 33,000 machinists at Boeing's commercial plane division walked out for nearly two months. "We'll manage through this," Ortberg said during the call. The division earned an operating profit of $110 million, compared with a loss of $913 million a year ago. It reported free cash flow usage of $200 million for the second quarter, compared with analysts' expectations of $1.72 billion, according to data compiled by LSEG. Boeing burned $2.3 billion in free cash during the previous quarter and $4.33 billion during the second quarter of 2024. Revenue for the quarter rose 35% to $22.75 billion, beating analysts' estimates of $21.84 billion. Agencies
Khaleej Times
a day ago
- Business
- Khaleej Times
Boeing posts smaller loss as aircraft deliveries rise
Boeing reported a smaller second-quarter loss on Tuesday as the U.S. planemaker ramped up jet production and deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. Shares of the company rose 1.5% in premarket trading. After years of grappling with quality issues and production delays on its flagship 737 MAX, Boeing has cautiously ramped up monthly output this year. In May, the company produced 38 737s. Production has been stable since then, according to the company. "As we continue to execute our Safety Quality Plan, there's more stability in our operations," CEO Kelly Ortberg said in a letter to Boeing employees on Tuesday. The U.S. Federal Aviation Administration had capped the production of Boeing's best selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024. "We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added. It has delivered 206 737 MAX jets through the first half of the year. Wall Street closely tracks aircraft deliveries, because planemakers collect much of their payment when they hand over jets to customers. Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven a month. Through the first half of the year, the planemaker has booked 668 orders, or 625 net orders after cancellations and conversions. An improvement in deliveries marks a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, highlighting the urgency of accelerating output to restore financial stability. The planemaker posted a net loss of $612 million, or 92 cents per share, for the quarter through June, compared with $1.44 billion, or $2.33 per share, a year earlier. However, the planemaker continues to face pressure from supply chain disruptions that have delayed production and limited its ability to meet surging aerospace demand. It posted a loss of nearly $12 billion in 2024 due to challenges across its major business units including charges on its defense programs. It also remains exposed to U.S. President Donald Trump's sweeping tariffs, which could increase parts costs and further strain an already fragile supply chain. Boeing's revenue for the quarter through June rose 35% to $22.75 billion.
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
Boeing cuts losses in Q2 as jet deliveries rebound and revenue grows
Boeing's quarterly losses more than halved and were much smaller than analysts' predictions as the US planemaker ramped up jet production and deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. Shares of the planemaker rose 2.4 per cent in premarket trading as the results highlighted Boeing's efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX. An improvement in deliveries marks a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, highlighting the urgency of accelerating output to restore financial stability. The planemaker's free cash flow usage, a key metric for Wall Street, also came in better than expected, signaling an improving cash position. "As we continue to execute our Safety & Quality Plan, there's more stability in our operations," CEO Kelly Ortberg said in a letter to Boeing employees on Tuesday. In May, the company produced 38 737s and production has been stable since then, according to the company. The US Federal Aviation Administration had capped the production of Boeing's best selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024. "We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added. It delivered 206 737 MAX jets through the first half of the year. Wall Street closely tracks aircraft deliveries, because planemakers collect much of their payment when they hand over jets to customers. Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven a month. Through the first half of the year, the planemaker booked 668 orders, or 625 net orders after cancellations and conversions. It reported free cash flow usage of $200 million for the quarter, compared with analysts' expectations of $1.72 billion, according to data compiled by LSEG. Operating profit in its defense, space and security business came in at $110 million, compared with a loss of $913 million a year ago. The planemaker posted an adjusted core loss per share of $1.24 for the quarter through June, compared with $2.90 a year ago. Analysts had expected loss of $1.48 per share.
Business Recorder
a day ago
- Business
- Business Recorder
Boeing's quarterly loss shrinks as jet deliveries rebound, but shares drop
Boeing's quarterly loss more than halved and was much smaller than analysts expected as the U.S. planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. Boeing shares dropped 2% in early trading. The results highlighted Boeing's efforts to cautiously increase monthly output this year, following years of quality issues and production delays on its flagship 737 MAX. Increased deliveries mark a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, increasing the urgency of accelerating output to restore financial stability. Boeing's financial improvements were tempered by its announcement that certification of the new 777-9 and 737 MAX 7 and 10 models will not happen until 2026, another setback for those programs. The company previously said it expected to finish certification by the end of this year. BD orders 25 Boeing planes as part of push to ease US tariffs The company is still developing solutions to address several lingering issues stalling certification, Boeing CEO Kelly Ortberg told CNBC. During the interview, he praised President Donald Trump's aggressive use of tariffs to hammer out trade deals. 'I like the way this tariff situation is playing out,' Ortberg told CNBC. 'It's good for our business, is good for aerospace, and will create jobs in the United States.' The planemaker posted an adjusted core loss per share of $1.24 for the quarter through June, compared with a $2.90 loss a year ago. Analysts had expected a loss of $1.48 per share. The planemaker's free cash flow usage, a key metric for Wall Street, was better than expected, signaling an improving cash position. 'As we continue to execute our Safety & Quality Plan, there's more stability in our operations,' Ortberg said in a letter to Boeing employees. In May, the company produced 38 737s and production has been stable since then, according to the company. Capped production The U.S. Federal Aviation Administration capped the production of Boeing's best-selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024. 'We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready,' Ortberg added. Boeing delivered 206 737 MAX jets through the first half of the year, compared to 135 a year earlier. Across all commercial jet programs, it delivered 285 airliners through June, compared to 175 during the same period in 2024. Wall Street closely tracks aircraft deliveries because planemakers collect much of their payment when they hand over jets to customers. Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven. Through the first half of the year, the planemaker booked 668 orders, or 625 net orders after cancellations and conversions. It reported free cash flow usage of $200 million for the second quarter, compared with analysts' expectations of $1.72 billion, according to data compiled by LSEG. Boeing burned $2.3 billion in free cash during the previous quarter and $4.33 billion during the second quarter of 2024. Its defense, space, and security business earned an operating profit of $110 million, compared with a loss of $913 million a year ago. Revenue for the quarter rose 35% to $22.75 billion, beating analysts' estimates of $21.84 billion.
