Boeing’s profit drops 67%

(New York) Boeing has unveiled results below forecasts in the second quarter of 2022, but the group, which has just garnered a series of large orders at the Farnborough air show, believes it can raise its cash flow bar over the year.

Posted at 8:05 a.m.
Updated at 8:30 a.m.

The turnover of the American manufacturer, which has still not resumed deliveries of the long-haul 787, fell by 2% between April and June, to 16.68 billion dollars and its net profit fell by 67% to 193 million.

Excluding exceptional items, the group recorded a loss of 37 cents per share, twice as large as expected by analysts.

But Boeing says it can generate positive free cash flow for the whole of 2022, a target closely watched by investors.

The stock rose 3% in electronic trading prior to the opening of the New York Stock Exchange.

Revenues from the commercial aviation division rose 3% in the quarter, supported by deliveries of its flagship aircraft, the 737 MAX, of which Boeing now produces 31 copies per month.

“Even with strong demand, we will not seek to accelerate production rates or push our system too fast,” said automaker boss Dave Calhoun in a letter to employees.

While Boeing, like many other companies, faces “supply chain constraints” and “inflation”, it prefers to prioritize “stability and predictability”.

Deliveries of the 787 Dreamliner, suspended after the discovery of the first manufacturing defects in the summer of 2020 and then since the end of May 2021, have still not resumed.

“The company continues to work with the FAA (the American aviation authority, editor’s note) to finalize the actions allowing the resumption of deliveries and prepares the planes”, affirms Boeing.

The division dedicated to defence, space and security, for its part, saw its turnover fall by 10%.

The group recorded two charges, one of $147 million related to the MQ-25, the future U.S. Navy tanker drone, and the other of $93 million related to the test flight in May of the Starliner capsule after many adventures.

The services division’s revenues increased by 6%, driven by the return of air traffic after the soft patch at the start of the COVID-19 pandemic.


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