Boeing increases cash flow while commercial aircraft losses persist
Boeing reported third-quarter free cash flow of 464 million dollars and revenue of 24.188 billion dollars. The aircraft manufacturer still posted a net loss of 116 million dollars. Its commercial aircraft business lost money as delivery numbers barely changed, while defense revenue rose and the company’s total order backlog reached 745 billion dollars.
Economics & Markets··Night
Cash generation rises despite a net loss
Boeing, the US aircraft manufacturer, reported a third-quarter core loss of 0.34 dollars per share on 27 October. That was wider than analysts’ expected loss of 0.2550 dollars. The core measure excludes specified accounting items. On the standard accounting basis, Boeing reported a net loss of 116 million dollars and diluted loss of 0.26 dollars per share.[1], [2]
Revenue increased from 23.270 billion dollars to 24.188 billion dollars. Operating cash flow rose from 1.123 billion dollars to 1.496 billion dollars. After property, plant and equipment expenditure of 1.032 billion dollars, free cash flow was 464 million dollars, compared with 238 million dollars a year earlier.[1]
Commercial deliveries barely change
Commercial airplane deliveries rose from 160 to 161. Boeing’s commercial aircraft revenue fell 3 per cent to 10.720 billion dollars, with an operating loss of 697 million dollars. Boeing attributed the results to delivery mix, projected costs associated with future production-rate changes and estimated supply-chain costs.[1]
The segment booked 300 net orders. Its backlog contained more than 6,300 airplanes valued at 612 billion dollars. Across the company, the total order backlog reached 745 billion dollars. Defense, Space & Security revenue increased 15 per cent to 7.935 billion dollars; its operating earnings included a 252 million dollar gain from selling HRL Laboratories.[1]
Settlement payments weigh on quarterly cash
Boeing identified working-capital timing as a contributor to operating cash flow, partly offset by about 0.7 billion dollars in US Department of Justice settlement payments. Cash and investments in marketable securities totalled 20.7 billion dollars at quarter-end. Consolidated debt was 45.9 billion dollars, and undrawn credit facilities provided access to another 10.0 billion dollars.[1]
