Boeing Reports Loss as Air Force One Work Drags
April 28 2021 - 7:45AM
Dow Jones News
By Doug Cameron
Boeing Co. said its work on replacing the Air Force One
presidential jets is behind schedule, taking another charge on the
loss-making program that has added to the financial pressures from
the stuttering recovery of its commercial airliner business.
The aerospace giant is contracted to deliver two converted 747-8
jumbo jets by the end of 2024, but has been forced to switch
suppliers for some of the interior work on the planes. It took a
$318 million pretax charge on the project in the latest quarter,
the second in a year and the latest drag from a defense unit that
it is relying on to carry it through to a recovery in commercial
airline traffic.
The limited resumption of 737 MAX and 787 Dreamliner jet
deliveries against a background of quality issues saw sales of
$15.2 billion in the first quarter, down 10% from a year earlier.
Boeing reported a loss of $561 million compared with a $641 million
deficit a year earlier.
Boeing has been grappling with commercial-airline production
issues in recent months. It halted 787 deliveries for five months
to resolve manufacturing problems. Earlier this month, it told
airlines to ground 106 MAX jets to resolve electrical issues
stemming from a change in its assembly process.
The company said the recovery in air-travel demand was gaining
traction but remained uneven. As sales of new aircraft have picked
up with the rise of Covid-19 vaccinations, the company has said a
U.S. trade deal with China would boost orders for new aircraft.
"Challenges remain, and we will continue to monitor the global
trade environment as well as Covid-19 trends across the globe,"
said Chief Executive David Calhoun in a message to staff
Wednesday.
The per-share loss of 92 cents in the quarter ended March 31 was
just ahead of the 98-cent consensus among analysts polled by
FactSet. The company burned through $3.4 billion of cash in the
quarter.
Boeing shares were down 1% in premarket trading.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
April 28, 2021 08:30 ET (12:30 GMT)
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