The Boeing 737 MAX airplane, with a Boeing 787 on top, is parked at Grant County International Airport on October 23, 2019 in Moses Lake, Washington.
David Rider | Getty Images
Boeing on Wednesday reported a loss of $ 2.4 billion for the second quarter and said it plans to slow production of its main commercial aircraft as the coronavirus epidemic increases demand for new aircraft and its best-sellers 737 MAX jets are grounded.
The epidemic has caused financial losses on Boeing’s airline customers and loss of demand for new aircraft, although Boeing was in crisis before the coronovirus spread around the world.
Boeing’s shares were less than 1% in premarket trading. But the stock has been trading at almost half the price since a year ago, and its best-selling aircraft, the 737 Max, has been grounded since March 2019 after two fatal accidents. Regulators do not expect the planes to be allowed to fly again before they fall.
Here’s Wall Street’s expectation based on estimates by average analysts compiled by Refinitive:
- Loss per share: $ 4.79 per share, adjusted, vs. $ 2.54 expected
- Revenue: $ 11.8 billion vs. $ 13.16 billion expected
The results came in worse than expected analysts. For the quarter ended June 30, Boeing’s net loss was limited to $ 2.40 billion, or $ 4.20 per share, $ 2.94 billion, or $ 5.21 per share, a year earlier.
On an adjusted basis, Boeing reported a $ 2.54 per share loss with a loss of $ 4.79 per share, Wall Street estimates.
Revenue fell 25% to $ 11.81 billion from $ 15.75 billion in the year-ago quarter and was lower than analysts’ forecasts for sales of $ 13.16 billion.
The long grounding of the 737 Max coupled with financial pain on the carrier has led to the cancellation of new Boeing jetliners this year, meaning less cash for manufacturers and suppliers.
Boeing is determined to expand the impact of weak demand for its aircraft and the drawbacks of new orders, a sour outlook that has bottomed out for large suppliers such as engine-maker General Electric and Spirit Aerosystems. According to a forecast by CNBC, Spirit, which fuses for Max, asked lenders to loosen the terms of some of its loans, which forecast a lower delivery of 737s than originally expected Share.
Boeing on Wednesday confirmed the planned ramp-up of production to ease. It said it would gradually increase the manufacturing of its 737 MAX by 31 months by early 2022, compared to plans to do so next year. It will cut production of its 787 aircraft by six months in a month next year.
According to Cirium consulting firm Ascend, Boeing has more than 470 planes not given to customers, most of them 737 Max jets.
Boeing’s main rival Airbus is set to report the results on Thursday.
In April, Boeing CEO Dave Calhoun said it would take two or three years to recover the demand for air travel. International demand has been particularly soft, like the 787 Dreamliner, hurting Boeing’s approach to widebody commercial aircraft. The International Air Transport Association, a trade group that represents most of the world’s airlines, said on Tuesday that it would recover global air passenger demand in 2024 to reach 2019 levels a year later than a year earlier Expects
The company has cut costs and said that this spring it aims to cut 10% of the workforce of about 160,000 people. It also shed liquidity with Monster selling $ 25 billion in April, Boeing’s biggest crisis ever, putting the weather in crisis.
Boeing officials will detail the results on Wednesday at 10:30 a.m. ET.
Read the full earnings release
This story is developing. Please check back for updates.
Correction: In an earlier version of this story a table stated that earnings per share. Boeing recorded the loss.