Boeing Reports Third Quarter Net Loss of $466 Million on 29 Percent Revenue Decline to $14.1 Billion
The aerospace giant reported a third quarter GAAP net loss of $466 million or ($0.79) per share and a core non-GAAP loss of ($1.39) per share. Revenue for the quarter declined 29 Percent to $14.1 billion largely attributable to COVID-19 and continued 737 MAX grounding.
On Wednesday (October 28, 2020) Boeing reported a third quarter GAAP net loss of ($466) million or ($0.79) per share compared to earnings of $1.2 billion in the third quarter of 2019. The aerospace giant’s non-GAAP loss per share was reported as ($1.39) per share. Third quarter revenue declined 29 percent to $14.1 billion versus $20 billion during the same period last year, largely attributable to the impacts of the global COVID-19 pandemic as well as the 737 MAX grounding. Operating cash flow for the quarter was ($4.8 billion) and as of September 30, 2020 the company had $27.1 billion in cash and marketable securities and total consolidated debt of $61 billion. The company ended the quarter with a backlog totaling $393 billion, including over 4,300 commercial airplanes. In Wednesday’s announcement, Boeing’s President and Chief Executive Officer, Dave Calhoun said,
“The global pandemic continued to add pressure to our business this quarter, and we're aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term. Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I'm proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”
Boeing has made steady progress towards the safe return to service of the 737 MAX including certification and validation flights by the U.S. Federal Aviation Administration (FAA), Transport Canada and the European Union Aviation Safety Agency (EASA). The updated crew training program for the aircraft has also been evaluated by the Joint Operational Evaluation Board (JOEB), which includes civil aviation authorities from the U.S., Canada, Brazil and the European Union. To date, the updated 737 MAX has completed approximately 1,400 test and flight checks with over 3,000 flight hours logged.
During the third quarter, Boeing Commercial Airplanes added the final 777X flight test airplane to the program and the GE9X engine received FAA certification. The company also announced in October that they will consolidate 787 Dreamliner production in South Carolina from mid-2021. Commercial Airplanes delivered 28 airplanes during the quarter and as previously mentioned, maintains a backlog of 4,300 airplanes valued at $313 billion. In trading Wednesday morning, shares in the Boeing Company (NYSE: BA) were 2.63% lower at $151.15/share (10:13 AM EDT).