Latest news with #KellyOrtberg
Yahoo
7 hours ago
- Business
- Yahoo
Boeing CEO says defense business can weather looming worker strike
Boeing CEO Kelly Ortberg said Tuesday he's not worried about the impact of an impending strike that would include 3,200 union workers that produce fighter aircraft and munitions at factories in Missouri and Illinois. The threat of a strike follows the employees' rejection Sunday of Boeing's most recent contract proposal. The International Machinists and Aerospace Workers Union said in statement a strike could begin Aug. 4 if the parties don't reach a deal before the end of a weeklong cooling off period. Ortberg noted during the company's second quarter earnings call that the scope of the potential strike — which includes mechanics in plants in St. Louis and St. Charles, Missouri — would be much smaller than that of the 30,000-worker strike last fall. During that strike, the company took a $661 million charge on its KC-46 tanker development contract with the U.S. Air Force, in part due to work stoppages on the Air Force's KC-46 tanker. 'We'll manage through this,' he said. 'I wouldn't worry too much about the implications of the strike.' Along with the KC-46, Boeing holds contracts for several major Defense Department programs, including the Air Force's F-47 and F-15EX fighters, T-7 training jet and the Air Force One recapitalization effort. Ortberg, who took over as CEO nearly a year ago, said the company is making a 'turnaround,' after taking major losses in 2024. On the defense side, the firm is making 'renewed efforts around baseline and risk management' on key military programs. The goal is to get to 'high single-digit' profit margins in the near future. One of those efforts is to avoid entering into fixed-price development contracts with DOD, which put the company at risk of accruing major charges from the government for exceeding cost and schedule targets. Boeing's KC-46 work offers a cautionary tale for this approach, after years of quality problems and overages have resulted in more than $7 billion in additional costs for the company. 'We're not making the errors of the past and signing up for fixed-price development, high-risk programs,' Ortberg said, noting that while the company carries several major development programs, it's working closely with the DOD to de-risk that work. 'We're just going to have to keep doing that,' he said. Sign in to access your portfolio
Gulf Today
7 hours 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
Hans India
8 hours ago
- Business
- Hans India
Boeing reports net loss of $612 million in Q2 2025
New Delhi: US-based aircraft manufacturer, the Boeing Company's net loss for the April-June quarter (Q2 2025) stood at $612 million, it said in a statement on Tuesday. The company had reported a net loss of $1,439 million in the same quarter a year ago. Meanwhile, revenue rose to $22.75 billion from $16.87 billion in the second quarter of 2024. The operating margin stood at 0.8 per cent against 6.5 per cent year-on-year. For the quarter, the loss from operations improved to $176 million from $1,090 million in Q2 2024. The company reported an operating cash flow of $227 million against a negative cash flow of $3,6923 million in the same quarter a year ago. The company's commercial aeroplanes' revenue of $10.9 billion for the second quarter, and the operating margin of (5.1) per cent, primarily reflects higher deliveries. The 737 programme increased the production rate to 38 per month in the quarter and plans to stabilise at that rate before requesting approval to increase to 42 per month later this year, the company said. The company said that it has booked 455 net orders in the quarter for commercial aeroplanes, including aeroplanes for Qatar Airways and British Airways. Commercial aeroplanes delivered 150 aeroplanes during the quarter, and backlog included over 5,900 aeroplanes valued at $522 billion. The company claimed that since May, the production has remained steady. "Our fundamental changes to strengthen safety and quality are producing improved results as we stabilise our operations and deliver higher quality aeroplanes, products and services to our customers," Boeing President and Chief Executive Officer Kelly Ortberg said. As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment, he added. Meanwhile, shares of Boeing were trading at $234.35, down 0.87 per cent at around 7.14 pm IST.
Khaleej Times
9 hours 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.
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Business Standard
9 hours 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.
