Boeing’s shares level will decrease and Air Force One result in a $1.2 billion loss
Boeing’s stock plummeted after the company disclosed a $1.2-billion loss in the most recent quarter, owing to one-time charges related to its Russia business, the Air Force One presidential flight, and the new 777X airliner. Boeing shares finished 7.5 percent lower at $154.46 after results that poorly below analyst forecasts as the firm revealed yet another delay with its 777X aircraft, after plummeting more than 12 percent earlier in the day. The loss is the latest in a string of poor results for the commercial aircraft manufacturer, which has also halted deliveries of its 787 airliner due to a series of production problems.
While conceding the report’s “messy” features, Chief Executive Dave Calhoun advocated for a long-term view of the organization. In a note to employees, Calhoun stated, “We are a long-cycle business, and the success of our efforts will be assessed over years and decades, not quarters.” “The purposeful actions we’re doing right now will promote operational stability and position us for long-term, sustainable success.”
On an analyst call, however, Calhoun was grilled on the company’s expanding list of issues, despite claiming that the company was making headway toward a turnaround. The loss was more than double the $537 million loss in the previous quarter. Revenues were $14 billion, down 8% from the previous year.
The extended timetable for the 777X “reflects an updated evaluation of the time to achieve certification criteria,” according to Boeing, which also announced plans for a “temporary hold” on production of the plane until 2023. First deliveries of the plane are now expected in 2025, resulting in a $1.5 billion loss for the huge US aerospace company.