The Boeing Company yesterday (October 25) reported a loss of $1.64 billion for the third quarter of 2023 as it grappled with production delays and defects in its bestselling 737 Max jet.
“The third quarter results were impacted by unfavorable defense performance and lower 737 deliveries,” Boeing said in a statement.
The US aerospace giant cut its 737 production target to between 375 and 400 planes in 2023, down from a previous forecast of 400 to 450 aircraft.
Issues related to improperly drilled holes in the fuselage – related to the supplier Spirit AeroSystems – had previously delayed Boeing’s 737 production program.
Boeing’s total revenue for the third quarter was $18.1 billion. The company’s shares fell 2.5% to $177.32 after the results.
Boeing’s losses come after a surprise production increase in the second quarter of 2023, when it posted an 18% increase in revenue from the second quarter of 2022, according to GlobalData’s filing database.
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From two fatal traffic accident with the 737 Max in late 2018 and early 2019, Boeing has turned a profit in just one of its past nine quarters.
While the problem-plagued 737 has been the main source of Boeing’s slump, some have pointed to the distraction of an order placed by the White House.
The US Air Force has ordered two Boeing 747-8s to serve in the Air Force One presidential air fleet, designated VC-25B.
Boeing reported a $482 million loss on its Air Force One contract due to higher estimated construction costs.
Such setbacks won’t affect the plane’s performance, CEO David Calhoun said, but “any unplanned setbacks can create sunk costs” in fixed-price contracts like the one Boeing agreed to for Air Force One.
Calhoun previously said Boeing “probably shouldn’t have done” the deal to build two new Air Force Ones under the Trump administration in 2018, CNBC mentionted.
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Read the original at Defence247.gr